In a market economy,
a. there is a fixed economic pie to be divided among individuals.
b. differences in incomes provide individuals with an incentive to supply resources that are highly valued by others.
c. a central distributing agency carves up the economic pie and allocates slices to individuals.
d. both a and b above are true.
B
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The Golden Rule of capital accumulation maximizes the steady-state level of
A) output per worker. B) capital per worker. C) consumption per worker. D) investment per worker.
The three possible sources of government funding include
A) explicit fees, taxes, and borrowing. B) international income, personal income taxes, and export taxes. C) foreign aid, revenues, and implicit fees. D) None of the above are correct.
Which of the following is not one of the four anticompetitive activities outlined in the Clayton Act?
a. price discrimination b. exclusive buyer/seller contracts c. buying a competitor's voting stock d. buying a competitor's plants and equipment e. interlocking boards of directors
Assume the following situation. In year 1, a $400 capital stock generates a $100 GDP. One-fifth, or $20 of the $100 GDP, is put into investment. The capital/output ratio in year 1 is
a. 0.25 b. 1 c. 4 d. 100 e. 400