The many layers of the federal government in the United States:
A. lead to economic inefficiencies because of difficulty aggregating and conveying
information.
B. enhance government's ability make effective decisions quickly.
C. better allow the invisible hand to direct government resources to their best uses.
D. improve accountability of government officials, thus leading to more efficient policies.
Answer: A
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Sugar can be refined from sugar beets. When the price of those beets falls,
A) the demand curve for sugar would shift right. B) the demand curve for sugar would shift left. C) the supply curve for sugar would shift right. D) the supply curve for sugar would shift left.
Of the following resources used to supply sidewalk food in New York City, which is the most expensive?
a. capital b. land c. entrepreneurial ability d. labor e. food
Why would a chain store sell some items, such as soda pop, below cost?
A) They are not interested always in maximizing profit. B) They feel people need soda pop more than the other items in the store. C) Pricing some items "below cost" might be an efficient strategy to maximize the store's total profit. D) Because most firms can only enjoy profits by consistently selling all their items below cost.
Answer the following statement(s) true (T) or false (F)
1. Changes in investment must be planned in order to affect real GDP. 2. Aggregate expenditures have historically been especially important to the economy in the short run. 3. Consumer spending can increase even if disposable income remains fixed. 4. Pretax income is considered an autonomous factor. 5. Marginal propensity to consume refers to how much you tend to spend on consumer goods and services out of your additional disposable income.