The economy is experiencing a recession combined with inflation. The self-correction school would say the proper response is to_____.
A. increase government spending
B. increase regulations on new research projects
C. do nothing
D. increase the money supply
Answer: C
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Which of these represents an example of citizens who would not typically be counted as unemployed?
A) when your economics professor loses his job and gets a new one at McDonald's B) when your fourteen-year-old cousin loses her summer job in September C) when your neighbor has been out of work for so long that he decides to stay at home and write a novel D) all of the above E) none of the above
In perfect competition:
(a) A few firms dominate the industry. (b) Firms are price makers. (c) There are many buyers but few sellers. (d) There are many buyers and sellers.
The law of supply states that:
A. there is a negative relationship between the price of a good and the quantity of it purchased by suppliers. B. there is a positive relationship between the price of a good and the quantity that buyers choose to purchase. C. there is a positive relationship between the price of a good and the quantity of it offered for sale by suppliers. D. at a lower price, a greater quantity will be supplied.
Which of the following is NOT a possible solution to the problem of pollution?
A) converting a resource that is communally owned into a privately owned resource B) imposing a tax on polluters that is related to the amount of pollution C) regulating the amount of pollution that a firm can produce D) subsidizing the costs of production of activities that generate pollution