According to your authors, a necessary condition for the evolution of a successful commercial society includes
A) stable interest rates.
B) reasonably secure property rights.
C) a superabundance of natural resources.
D) zero economic losses.
B
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The Bureau of Labor Statistics has taken several steps to reduce the bias in the consumer price index. Which of the following is not one of the steps taken to reduce the bias?
A) updating the market basket every two years, rather than every 10 years B) using statistical methods to reduce the size of the quality bias C) conducting a point-of-purchase survey to track where consumers actually make their purchases D) incorporating substitutions by consumers when prices of specific products rise rapidly
Which of the following statements concerning the circular flow model is (are) correct?
a. an increase in planned savings always generates an increase in planned investment spending. b. planned investment spending is an injection into the circular flow. c. increased investment always results in decreased savings. d. All of these are correct.
The fact that a perfectly competitive firm's total revenue curve is an upward-sloping straight line implies that
A. The total profit curve is also an upward-sloping straight line. B. Product price increases at all output levels. C. Product price decreases as output increases, and demand is elastic. D. Product price is constant at all levels of output.
Suppose government purchases increase by $100 million in an economy, which leads to total output increasing by $500 million. The size of the multiplier is _____
Fill in the blank(s) with the appropriate word(s).