According to the textbook, government price controls fail because:
A. legislation cannot alter basic economic incentives.
B. firms ignore the price controls.
C. they are not enforced by government.
D. bureaucrats lack accurate market data.
Answer: A
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The economy pictured in the figure below has a(n) ________ gap with a short-run equilibrium combination of inflation and output indicated by point ________. 
A. recessionary; B B. recessionary; C C. recessionary; A D. expansionary; A
If the death of an owner causes the firm to dissolve, the firm must have been
A) a partnership only. B) a proprietorship only. C) a corporation only. D) either a proprietorship or a partnership.
The largest component of household consumption spending is expenditures on:
a. services. b. durable goods. c. nondurable goods. d. food. e. transportation.
Over the course of the twentieth century there has been no pronounced tendency for concentration in the United States to increase
a. True b. False Indicate whether the statement is true or false