Which of the following is NOT an economic function of the U.S. government?
A) promoting competition
B) providing public goods
C) promoting price stability
D) encouraging production of government-inhibited goods
Answer: D
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When the economy is on operating beyond the natural rate of real output, efforts to bring inflation down with monetary policy will be ____ successful and efforts to stimulate the economy will be ____ successful
a. More; less b. More; more c. Less; less d. Less; more
Suppose your accountant told you that the $50,000 you made last year was the total revenue you earned minus both explicit and implicit costs. You would be pleased because that $50,000 represents your
a. economic loss b. economic profit c. normal profit d. money receipts and payments and you came out ahead by $50,000 e. accounting profit
The two basic reasons why a monopoly exists are barriers to entry and cost advantages
a. True b. False Indicate whether the statement is true or false
If the government set a price floor at $8
A. there would be a temporary surplus, then prices would fall to equilibrium.
B. there would be a permanent surplus, at least until the price floor was lifted.
C. the price would rise back to the equilibrium price.
D. the price floor would not have any effect on this market.