Which of the following is NOT an appropriate role for government to play in the economy?
A. Addressing externalities
B. Promoting free speech in marketing
C. Redistributing income
D. Regulating markets
Answer: B
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Consider two countries: A and B. In country A, the annual growth rate of GDP per capita is 2%, while in country B the annual growth rate of GDP per capita is 6%. At present, country B's GDP per capita is higher than country A's GDP per capita
Which of the following statements will then be true? A) The gap between country A's GDP per capita and country B's GDP per capita will decrease for the first few years and then will increase later. B) The gap between country A's GDP per capita and country B's per capita will decrease over time. C) The gap between country A's GDP per capita and country B's per capita will widen over time. D) The gap between country A's GDP per capita and country B's per capita will remain the same.
The classical economists' contention that prices double when the money supply doubles is predicated on the belief that in the short run velocity is ________ and real GDP is ________
A) constant; constant B) constant; variable C) variable; variable D) variable; constant
Suppose an individual has a fixed amount of wealth to allocate between consumption in two periods (c1 and c2). Any funds not spent in period 1 will earn interest (at the rate r) which will increase purchasing power in period 2 . Consider four possible reactions to an increase in r: I. c1 increases. II. c1 decreases. III. c2 increases. IV. c2 decreases. Which of these is consistent with the
hypothesis that both c1 and c2 are normal goods? a. I, II, III, and IV b. I, II, and IV, but not III c. I, III, and IV, but not II d. I, II and III, but not IV
The deadweight loss of a tax rises even more rapidly than the size of the tax
a. True b. False Indicate whether the statement is true or false