The purpose of antitrust policy in the United States is to
A. Determine drug safety and performance.
B. Check the validity of advertising claims.
C. Encourage business mergers and acquisitions.
D. Encourage competition among producers.
Answer: D
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Exchange rates
a. are always fixed b. fluctuate to equate the quantity of foreign exchange demanded with the quantity supplied c. fluctuate to equate imports and exports d. fluctuate to equate interest rates in various countries e. fluctuate according to agreements between the governments of various countries
Which of the following is true of international reserve currencies?
a. They are used for international exchange of goods and services. b. They are used to settle international debt. c. They are used for international bookkeeping. d. They are held for government investment abroad. e. They are created for international stock market trading.
A circular-flow diagram is a model that
a. helps to explain how participants in the economy interact with one another.
b. helps to explain how the economy is organized.
c. incorporates all aspects of the real economy.
d. Both (a) and (b) are correct.
What is the largest category in state government spending?
A. education B. public welfare C. highways D. police and correction