During periods of unemployment
A) the economy operates at a point inside the production possibilities curve.
B) the economy operates at a point outside the production possibilities curve.
C) the production possibilities curve shifts inward.
D) the production possibilities curve shifts outward.
A
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If the price of gasoline was $3.25 a gallon and it is now $3.75 a gallon, what is the percentage change in price?
A) 7.1 percent B) 13.3 percent C) 15.4 percent D) 33.3 percent
Which of the following provides the strongest evidence that the corporate form of business structure is relatively efficient, particularly when business firms are large?
a. the fact that almost 90 percent of business revenues are generated by corporations b. the fact that individual proprietorships are more numerous than corporations c. the fact that economic theory indicates corporate managers have some leeway to pursue their own interests at the expense of the owners of the firm d. the high salaries of many corporate executives, including some managing firms that are making economic losses
Government officials tend to make:
A. better economic decisions than private individuals because of the wealth of information at their disposal. B. better economic decisions than private individuals because of the efficient processes and flexibility built into the government bureaucracy. C. inefficient choices because they lack the information necessary to accurately weigh marginal benefits and marginal costs. D. inefficient choices because the invisible hand directs them away from the resource allocation where marginal benefits equal marginal costs.
The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.