Which of the following explains the vicious circle of poverty?
a. By investing in education and infrastructure at the same time, the country can overcome the problems of poverty
b. Poverty arises out of the lack of investment, but they cannot invest because they are poor.
c. A nation can shift its production possibility curve inward by shifting more resources into the production of capital goods.
d. A nation can shift its production possibility curve outward by shifting more resources into the production of consumer goods.
e. There are dual economies in the world: Some are rich and others are poor.
B
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The Federal Trade Commission Act declares that all of the following are illegal except which one?
A) deceptive acts or practices in or affecting commerce B) mergers C) unfair acts or practices in or affecting commerce D) unfair methods of competition in or affecting commerce
A major fruit juice manufacturer failed in its attempt to engage in price discrimination between students and all other consumers. What is the most likely explanation for this failure?
a. There was nothing to prevent the students from reselling the fruit juice to other consumers. b. The two groups of consumers have different demand elasticities for fruit juice. c. The cost of producing the product is relatively high. d. Market demand for fruit juice is inelastic.
As a rationing mechanism, discrimination according to seller bias is
a. efficient and fair. b. efficient, but potentially unfair. c. inefficient, but fair. d. inefficient and potentially unfair.
A tax levied on the buyers of a good shifts the
a. supply curve upward (or to the left). b. supply curve downward (or to the right). c. demand curve downward (or to the left). d. demand curve upward (or to the right).