Macroeconomic policies are government policies designed to affect:
A. particular sectors of the economy.
B. the economic activity of the government.
C. the environmental impact of all industries.
D. the performance of the economy as a whole.
Answer: D
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The "lemons" problem is that
a. cars of verifiable high quality are withheld from the used car market b. cars of verifiable low quality are withheld from the used car market c. cars of unverifiable high quality are withheld from the used car market d. cars of unverifiable low quality are withheld from the used car market
Once the profit-maximizing output where MR = MC is determined, price is set by
a. adding a standard markup percentage to marginal cost. b. the demand curve. c. making it equal to MR = MC. d. subtracting the marginal cost from total revenue.
The net investment income from abroad is U.S. investment earnings from foreign assets minus what?
a. foreigners earnings from their U.S. assets b. foreigners earnings from investments at home c. U.S. investors stock market earnings d. U.S. bondholders earnings from interest abroad
Which of the following statements indicates the idea of trade-offs?
A) "I chose the road less traveled." B) "The devil made me do it." C) "You've got me under your spell." D) "Always give it the best that you can."