If, in response to a weak employment picture, a law was passed to increase the number of lanes on all interstate highways by at least one lane, this would likely
A. decrease aggregate supply.
B. increase aggregate supply.
C. increase aggregate demand.
D. decrease aggregate demand.
Answer: C
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Which of the following is not a characteristic of the structure of perfectly competitive markets?
A. Each individual firm is small in size relative to the overall market. B. Few sellers. C. Homogeneous product. D. Easy, low cost entry and exit.
A group of nations that grants member special trade privileges is
A) World Trade Organization. B) European Union. C) General Agreement on Tariffs and Trade. D) North American Free Trade Agreement.
Which of the following statements is TRUE for society as a whole?
A. Demand for services always reflects all social costs. B. Social benefits are always emphasized in advertising. C. Private costs are not always equal to social costs. D. Supply of services always reflects all social costs.
When the monetary authorities expand the supply of money rapidly,
a. its purchasing power tends to increase. b. holding money is a poor method of storing value. c. the long-run sustainable real growth rate of the economy will tend to increase. d. the prices of goods and services will generally decline.