(Consider This) Which of the following statements is true about U.S. firms?
A. Over half are bankrupt within the first two years after starting up.
B. Over half are bankrupt within the first five years after starting up.
C. Nearly 65 percent last 10 years or more.
D. The life expectancy of a U.S. firm is approximately 22 years.
Answer: B
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Which of the following pairs of goods are likely to be considered substitutes?
A) Coffee and sugar B) Printers and printing ink C) A Ford car and public transportation D) A Nokia cell phone and a Nokia cell phone charger
Who made the campaign pledge, "Read my lips: no new taxes?"
A. Gerald Ford B. Second President Bush C. Ronald Reagan D. First President Bush
Suppose the Consumer Price Index (CPI) increased by 5 percent over each of the last 5 years while the GDP price index increased by 12 percent annually. Which of the following reasons could explain this difference?
a. Police unions across the country agreed to substantial salary cuts. b. Import good prices increased relative to domestic good prices. c. The price of used automobiles increased substantially relative to the prices of other goods. d. The price of fighter planes dropped due to increased competition in the aerospace industry. e. The price of investment goods purchased by businesses increased substantially relative to the prices of all other goods.
Which of the following factors weakens the case for private-sector provision of goods and services relative to public-sector provision?
a. constitutional rules b. the shortsightedness effect c. the special-interest effect d. public goods