The fact that output gaps will not last indefinitely, but will be closed by rising or falling inflation is the economy's:
A. income-expenditure multiplier.
B. self-correcting property.
C. short-run equilibrium property.
D. long-run equilibrium property.
Answer: B
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In the national income accounts, new investment goods are considered
a. intermediate goods, and therefore, not counted. b. final goods. c. subtractions from final output. d. depreciated goods
The presumed objective of the U.S. corporation is to maximize
a. Stakeholder value b. Shareholder value c. Profits before taxes d. The sum of shareholder and stakeholder value e. None of the above
Unregulated natural monopolies:
A. create no problems for policy-makers. B. are always protected by government policy. C. can capture profits by restricting output. D. never capture lowest costs per unit possible.
The threat of a large fine for failure to pay income taxes is an example of
A. a negative incentive to get all people to pay taxes. B. the ineffectiveness of incentives to get people to pay their taxes. C. the excessive power of the Internal Revenue Service. D. people failing to consider all the benefits the government provides them.