Efficiency is an important goal because when markets are efficient:
A. there are more resources available to achieve other goals.
B. there is no need for government intervention in the economy.
C. the poor benefit more than the wealthy.
D. there is less income inequality.
Answer: A
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The largest component of aggregate expenditure in the United States is:
A. consumption. B. government purchases. C. exports. D. investment.
You are on a vacation in a foreign country. Because it is your first visit to the country, you do not know much about the tourist spots. So you decide to ask the manager of the hotel regarding the popular tourist places
He tells you that there is a waterfall and a beautiful park close to the hotel that you can visit. You are wondering which place to go to when you overhear some of the tourists planning a trek to one of the falls. You decide to join them. This is an example of a(n) ________. A) moral hazard B) adverse selection C) pecuniary externality D) information cascade
Which legal claim comes with voting rights?
A) common stock B) preferred stock C) bond D) reinvestment
Monopsonistic competition
a. exists when there are many buyers offering differentiated conditions for sellers. b. is very prevalent in the U.S. economy. c. exists when a great number of firms hire labor, offering a variety of working conditions and fringe benefits. d. All of the above.