Which of the following is an important difference between government and privately-owned enterprises?
A) Government can distribute goods without employing discriminatory rationing criteria.
B) Government can more easily use negative incentives to obtain resources.
C) Government does not produce exchangeable commodities or services.
D) Government provides services at a lower opportunity cost.
E) Government tends to pay close attention to the varying preferences of the people.
B
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According to Robert Solow, the production function should be written as
A) Y = F(K, L, A). B) Y = F(K, L). C) Y = F(A, L). D) Y = F(K, A).
All of the following were significant changes in the mortgage market in the 2000s EXCEPT
A) investment banks became significant participants in the secondary mortgage market. B) lenders loosened lending standards. C) mortgage-backed securities became more popular with investors. D) borrowers tended to increase the amount of their down payments.
What should be the priority of politicians? Should they be mainly concerned with conveying and voting the wishes of the people that they represent? Should they be mainly concerned with standing for positions that they feel strongly about? Should they be mainly concerned with securing reelection?
What will be an ideal response?
"Unemployment increased in the last month to its highest level in the past ten years." This quote would be an example of:
a. A normative economic statement b. A positive economic statement c. The fallacy of composition d. Post hoc, ergo propter hoc fallacy