Two years ago, a loaf of bread at the corner supermarket cost $1.50. Last year, it cost $1.75. This year, it costs $2.00. This trend exemplifies an increase in ______.
a. inflation
b. monetary theory
c. the unemployment rate
d. the gross domestic product
a. inflation
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Milton Friedman defined a pure free enterprise economy to include all of the following, BUT
A. independent from government interest B. public ownership of production and distribution C. maximizing of economic self-interest D. competition
Pluralism is a(n) __________ theory of democracy.
A. group B. conflict C. functionalist D. elite
A difficult and relatively infrequent type of policy analysis that systematically examines conflicts and concerns about policy alternatives from the standpoint of values and rights is referred to as ______.
A. cost–benefit analysis B. ethical analysis C. decision analysis D. risk analysis
How does economic liberalism compare with mercantilism?
A. Economic liberalism is not concerned with whether one state gains more or less than another, just whether the state's wealth is increasing in absolute terms, whereas mercantilism emphasizes that each state must protect its own interests at the expense of others. B. Economic liberalism emphasizes conflicting interests in economic exchanges, whereas mercantilism emphasizes shared interests. C. Economic liberalism asserts that the most important goal of economic policy is the creation of the most favorable possible distribution of wealth, whereas mercantilism asserts that the most important goal is the maximum creation of total wealth. D. Economic liberalism advocates a role for politics in market processes, whereas mercantilism advocates for market processes to be relatively unhindered by political elements.