A market system (market economy) depends on the market to
A. find the most efficient way of using resources.
B. determine how large the budget deficit should be.
C. decide how much government regulation there should be.
D. provide minimum incomes for everyone.
E. All of the responses are correct.
Answer: A
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What is intellectual property?
A. The power of the mind to create new ideas for future use B. The ability to use technology to solve problems. C. Ideas that are legally protected from being used by others. D. The ability of individuals to use their mind to solve real-world problems.
Government's use of eminent domain is a solution to
A) the problem of negative externalities. B) potential monopolization of a market. C) the holdout problem. D) the free-rider problem.
If capital and labor each grow 5% in a year, the elasticities of output with respect to capital and labor sum to one, and productivity grows 2% in the year, by how much does output grow during the year?
A) 2% B) 3% C) 5% D) 7%
Deflation:
a. under the current trends will cause consumers' purchasing power to shrink. b. has been persistent in the U.S. economy since the Great Depression. c. was prevalent during the oil shocks of the 1970s. d. none of these choices.