The principle economic cost of growth is
A. higher inflation rates.
B. higher interest rates.
C. investment in stocks and bonds.
D. current consumption sacrificed for capital formation.
Answer: D
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Which of the following least resembles a case of taste-based discrimination?
A) Julian does not like redheads because they remind him of the clowns that terrified him at the circus when he was young, so he refuses to hire any redheads to work for him. B) Alyssa will not hire anyone under the age of 30 because she believes young people are basically lazy and irresponsible. C) Martin hates Scandinavians so he refuses to hire anyone who has blond hair and blue eyes. D) Lorena does not like a single thing about men, she does not want to be around men, and refuses to even acknowledge their existence. It comes as no surprise that she will not hire any men to work at her restaurant.
The Constitution helped establish a secure and well-defined system of property rights and rights of persons because it did which of the following?
(a) It established that people could be deprived of property without due process of law. (b) It loosely defined which contracts would be enforced. (c) It permitted bankruptcy without just cause and required government stamp of approval. (d) It let market forces, not government, set prices on the sale of land among private citizens.
The variable used to measure economic growth is
A) the growth of the money supply. B) the trade surplus. C) the growth in per capita real GDP. D) the number of new jobs created.
In the classical model with an open economy, an increase in government purchases can affect a country's exchange rate, causing its imports and exports to change
a. True b. False