According to Adam Smith, individual self-interest
a. is a powerful force for economic progress when it is directed by competitive markets.
b. is a powerful force for economic progress when individuals are wisely directed by a strong central government.
c. is a major factor in retarding the economic progress of humankind.
d. could be either a positive or negative force for economic progress, depending on the moral influences of political leaders.
A
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Define the following terms and explain their importance to the study of macroeconomics:
a. open economy b. closed economy c. budget deficits and trade deficits d. international capital flows
Which of the following is true of long-run equilibrium in a perfectly competitive market? a. At the profit-maximizing price, average total cost is at its lowest
b. At the profit-maximizing price, marginal cost is at its lowest. c. At the profit-maximizing price, average total cost is rising. d. At the profit-maximizing price, average total cost exceeds marginal cost.
Which one of the following is part of our money supply?
A. Gold B. A credit card C. NOW accounts D. A personal check
Which of the following are factors of production?
A. Implicit and explicit costs. B. Productivity. C. Land, labor, capital, and entrepreneurship. D. Output in a production function.