The subject of economics is primarily the study of:
a. the government decision-making process.
b. how to operate a business successfully.
c. decision-making because of the problem of scarcity.
d. how to make money in the stock market.
c
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Refer to Figure 2-15. In the circular flow diagram, economic agents M represent
A) firms. B) product markets. C) factor markets. D) households.
The difference between the gross public debt and the net public debt is
A. the sum of all previously accumulated government budget deficits and surpluses. B. all private-sector borrowing from private sources. C. the sum of all previously issued U.S. government securities that have been purchased by foreign residents. D. borrowing of government agencies from other government agencies within the nation.
A union that pursued a policy of restricting entry over time into the union would
A) see real wages hold constant over time at whatever premium they could get initially. B) also have to negotiate to be sure that all the members were able to find jobs. C) generate rising real wages for its membership over time as long as demand for union workers increased over time. D) fail to obtain benefits for their workers in excess of what the workers would get under open markets.
Suppose that a regulated industry experiences an increase in the price of inputs used to produce the good. Which of the following statements is TRUE?
A. An increase in price will occur quicker in the capture hypothesis than the share-the-gains, share-the-pain theory. B. An increase in price will occur quicker in the share-the gains, share-the-pain theory than the capture hypothesis. C. Under both the capture hypothesis and the share-the-gains, share-the-pain theory profits will decrease. D. In the capture hypothesis there will be an increase in price but not in the share-the-gains, share-the-pain theory.