The market allocates goods to individuals according to the individuals’
A. desire for the good.
B. ability to pay for the good.
C. desire and ability to pay for the good.
D. political influence.
Answer: C
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An increase in income taxes ________ employment and ________ potential GDP
A) increases; increases B) increases; does not change C) decreases; decreases D) does not change; does not change E) increases; decreases
If the personal assets of the owners can be claimed if the business is bankrupt, the owners are said to have
A) a corporation type of business. B) limited liability. C) separation of ownership from control. D) unlimited liability.
If there is an exogenous decrease in investment spending, Monetarists argue that there would be little or no effect on real output because the interest rate would __________,
investment would __________, saving would __________, and consumption would __________. A) decline; increase; increase; decrease B) decline; increase; decrease; increase C) rise; decrease; decrease; increase D) rise; decrease; increase; increase
The table in the above figure shows the levels of output resulting from different levels of inputs. Returns to scale are greatest at which level of output?
A) 100-200 units B) 200-400 units C) 400-600 units D) There is insufficient information to answer the question.