Which of the following best describes a steady state?
A. Each firm in the economy receives a steady stream of income.
B. The standard of living is increasing at a stable rate.
C. Political stability is maintained by the state.
D. Output per worker, consumption per worker, and capital per worker are constant.
Answer: D
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A teenaged babysitter is similar to a firm in a perfectly competitive industry in that, for both
A) average costs of production do not change when their industry expands. B) fixed costs are lower than variable costs. C) there are many other suppliers of similar goods or services. D) the implicit costs of production exceed the explicit costs of production.
The first antitrust law in the United States was the
A) FTC Act. B) Clayton Act. C) Sherman Act. D) Robinson-Patman Act.
The colonies as a whole had a significant commodity import deficit in their trade with England. The least important source of foreign exchange earnings to offset this trade deficit was:
a. insurance charges and merchant commissions. b. the sale of ships. c. the sale of colonial shipping services. d. payment for slaves.
Because the banking system operates using fractional reserves,
a. the money multiplier is greater than one. b. excess reserves are equal to zero. c. required reserves are equal to 100 percent. d. banks can loan out only their required reserves. e. the money multiplier must be equal to zero.