Governments may successfully intervene in competitive markets in order to achieve economic efficiency
A) at no time; competitive markets are always efficient without government intervention.
B) to increase the incidence of positive externalities.
C) in cases of positive externalities only.
D) in cases of negative externalities only.
E) in cases of both positive and negative externalities.
E
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M1 is defined as a measure of money including, in part,
A) checkable deposits and currency. B) time deposits and currency. C) currency and savings deposits. D) time deposits and money market fund deposits. E) the lines of credit on credit cards and currency.
In general, one would expect that life expectancies reflect international differences in income levels. Do the data support such a claim?
A) Average life span falls as relative poverty falls. B) Average life span increases as relative poverty falls. C) There is no statistically significant relationship between the two. D) The relation is not very strong. E) The relationship looks more like a U-shape.
Turning points in business cycles occur when
A) a new business cycle is initiated at the trough. B) the economy hits the peak or trough in the business cycle. C) the business cycle begins to follow a new pattern that differs from previous business cycles. D) a new business cycle is initiated at the peak.
Which of the following holds true if a country is said to have a comparative advantage in the production of wheat?
a. The country can produce more wheat than any other nation. b. The opportunity cost of producing wheat is the lowest in the country. c. The price of wheat is the lowest in that country. d. Domestic wheat is of the best quality in the world. e. The country can produce only wheat.