Which of the following increases in response to the interest-rate effect from a decrease in the price level?
a) investment but not consumption
b) consumption but not investment
c) neither investment nor consumption
d) both investment and consumption
Answer: d) both investment and consumption
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The term "property rights" refers to
A) the physical possession of a house or any other property which the owner legally purchased. B) the ability to exercise control over one's own resources within the confines of the law. C) the right of a business not to have its assets confiscated by the government in the event that the business is accused of committing fraud. D) the government's right to appropriate land from wealthy land owners to redistribute to peasants.
Why do externalities arise?
a. The costs of production are not borne by the producer. b. An economic activity imposes a burden on those who are not directly involved in it. c. The consumption of a public good is nonexcludable. d. The government produces goods and services which are consumed by only a particular group of people. e. Goods of mass consumption are not produced as they do not yield profit for the producers.
A cartel is a group of sellers of a single product who have joined together in order to enjoy the advantages of perfect competition
a. True b. False Indicate whether the statement is true or false
Which of the following resulted from the Smoot-Hawley trade bill of 1930?
A) The stock market began a steady recovery from the crash of October 1929. B) Imports decreased, while exports increased, resulting in an overall increase in GDP and tariff revenues. C) The higher tariff rates increased federal revenues and led to a balanced budget the year after passage of the bill. D) The unemployment rate, which stood at less than 8 percent when the bill was passed, soon soared to double-digit levels.