A free market system tends to

A. produce a fairly equal distribution of income.
B. pay people exactly what they are worth.
C. produce a relatively unequal distribution of income.
D. pay most people more than they are worth, at the expense of reducing firms’ profits.


Answer: C

Economics

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Cross elasticity of demand compares the change in the

a. price of one good that is generated by a change in the price of another good b. quantity demanded of one good that is generated by a change in the price of another good c. price of one good that is generated by a change in quantity demanded of another good d. quantity demanded of one good that is generated by a change in the supply of another good e. quantity demanded of one good that is generated by a change in quantity demanded of another good

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In reality, the Fed's information is fairly imprecise in regards to:

A. inflation rates. B. potential GDP. C. actual real GDP. D. unemployment.

Economics

Real GDP is better than nominal GDP for measuring growth because real GDP has been adjusted for changes in

A. Productivity. B. The price level. C. Unemployment. D. The business cycle.

Economics

Figure 8.3 shows a firm's marginal cost, average total cost, and average variable cost curves. At Q = 100, the average fixed cost is:

A. $30. B. $40. C. $50. D. $60.

Economics