When competitive forces in an industry are weak,
a. the absence of competition generally leads to overproduction.
b. prices may exceed the amount consumers are willing to pay.
c. the operational efficiency of private firms will be enhanced.
d. higher prices and less than optimal production may result.
D
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
By definition, when the economy is in equilibrium it must be true that
A) leakages equal injections. B) saving equals investment. C) government spending equals taxes. D) exports equal imports.
Net present value and internal rate of return capital budgeting decisions can differ because
A) the initial costs of the capital outlays differ. B) the cash flow streams differ. C) the discount rates differ for different time periods. D) All of the above
Which of the following is closest to the future value of a $4,000 deposit earning 2 percent interest annually after 10 years?
A. $4,122 B. $4,876 C. $5,025 D. $4,805