Which of the following is a positive side effect of business start-ups and the business failures that often follow?
a. The process makes it possible to try out numerous new ideas, and some of them will substantially improve our lives.
b. The process increases total employment, and leads to a lower rate of unemployment.
c. The process generates additional revenue for the government, which will then be used to produce goods and services that people value.
d. This is a trick question. There are no positive side effects of business failures.
A
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A decrease in the nominal money supply would shift the:
A) aggregate demand curve rightward. B) aggregate demand curve leftward. C) aggregate supply curve rightward. D) aggregate supply curve leftward.
Economic growth can be illustrated by: a. a movement along the production possibilities curve
b. a movement from a point on the production possibilities curve to a point inside the production possibilities curve. c. an inward shift of the production possibilities curve. d. an outward shift of the production possibilities curve.
Revenue sharing is usually a means of
a. making states transfer money to the federal government. b. equalizing expenditures per pupil made by school districts. c. splitting the revenue earned from excise taxes between states and the federal government. d. making grants to state and local governments.
According to the purchasing power parity theory, which of the following is most likely to affect exchange rates?
A. Differences in inflation rates B. Differences in interest rates C. Differences in income levels D. Differences in real GDP growth rates