Which of the following is true?
a. economic freedom is present if a country is a political democracy.
b. economic freedom ratings indicate the consistency of a nation's institutions and policies with personal choice, freedom of exchange, and protection of private property.
c. economies that are highly free tend to grow less rapidly than those with less economic freedom.
d. all of the above are correct.
B
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A perfectly competitive firm will shut down rather than produce if its
A) price is less than average variable cost. B) price is less than total variable cost. C) total revenue is less than total cost. D) price is less than marginal cost.
Assume that the central bank purchases government securities in the open market. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the quantity of real loanable funds per time period and real GDP in the context of the Three-Sector-Model?
a. The quantity of real loanable funds per time period falls, and real GDP falls. b. The quantity of real loanable funds per time period and real GDP remain the same. c. There is not enough information to determine what happens to these two macroeconomic variables. d. The quantity of real loanable funds per time period rises, and real GDP remains the same. e. The quantity of real loanable funds per time period rises, and real GDP rises.
The agency most responsible for Japan's industrial policy:
a. MITI b. The central bank c. The finance ministry d. The prime minister e. The emperor
As gasoline prices increase, which of the following will happen?
a. Demand will increase. b. Supply will be reduced. c. Supply will increase. d. Demand will drop significantly.