Private ownership and competitive markets are important for economic growth because they provide individuals with a strong incentive to:
a. care for resources and use them beneficially.
b. innovate and introduce new products that are highly valued relative to their cost.
c. produce goods efficiently.
d. all of the above are correct.
D
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In the nation of Transporta, the income elasticity of demand for used cars is -2.66. So when incomes in this nation increase by 10 percent
A) the quantity of used cars demanded will increase by 26.6 percent. B) used cars will be normal goods. C) the quantity of used cars demanded will decrease by 26.6 percent. D) the demand curve for used cars will shift rightward.
Which of the following occurred following the failure of the Bank of the United States in 1930?
A) Interest rates on low-grade corporate bonds rose relative to high-rated corporate bonds. B) Other banks in New York City suffered liquidity problems. C) A bank panic ensued within days. D) The stock market crashed.
What trade-off must be considered when deciding how much of your wealth is to be held as money relative to bonds?
a. Bonds pay more interest and are easier to use for payment. b. Bonds pay less interest but are less convenient. c. Bonds pay more interest but are less convenient relative to money. d. Money pays less interest and is less convenient to use. e. Money pays more interest and is less convenient to use.
If the minimum efficient scale (MES) in an industry is 20 percent of the total consumption of a product, how many MES plants could be supported profitably in that industry?
A. 5 B. 10 C. 20 D. 100