Monopoly pricing prevents some mutually beneficial trades from taking place. These unrealized, mutually beneficial trades are
a. of little concern to society.
b. a deadweight loss to society.
c. a sunk cost to society.
d. also observed in competitive markets.
b
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Suppose that you are the president of a small printing company and you are considering the purchase of new machinery. What factors must you consider in making this decision?
What will be an ideal response?
A decrease in currency in circulation combined with an equal increase in savings account deposits would: a. increase both M1 and M2
b. increase M1 but have no effect on M2. c. decrease both M1 and M2. d. decrease M1 but have no effect on M2.
The new European Economic Community, after it changed its name to the European Communities, tackled two issues related to:
A) enlargement (expansion) of the European Communities and economic integration between members. B) immigration and terrorism. C) secret Nazi cells and latent communism. D) unemployment and inflation.
Which of the following statements is most accurate about modern economic growth?
A. Economic historians mark modern economic growth as beginning around A.D. 1500. B. Modern economic growth is characterized by sustained and ongoing increases in living standards. C. Modern economic growth has virtually eliminated business cycle fluctuations. D. Modern economic growth has been distributed more or less equally across nations.