Related to the Economics in Practice on page 316: From a consumer welfare standpoint, as the variety of available choices of a particular type of product increases, consumer welfare
A. decreases at a proportional rate.
B. increases at a proportional rate.
C. increases to a point, but eventually may lose value with too much variety.
D. tends to remain very constant.
Answer: C
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In the labor market, an increase in labor productivity ________ the real wage rate and ________ the level of employment
A) raises; increases B) raises; decreases C) lowers; increases D) lowers; decreases
Inequality between countries, in terms of differences in their average national incomes, has been:
A. increasing over recent decades. B. decreasing over recent decades. C. decreasing since the 1930s. D. increasing since the 1930s.
The private ownership of property and the use of the market system to direct and coordinate economic activity is most characteristic of: a. a command economy. b. a mixed economy
c. a market economy. d. a traditional economy.
Which of the following might encourage the government to let inflation rates rise?
A. A higher inflation rate reduces the budget deficit. B. The government has more work to do when there is an AD excess. C. Social Security and retirement benefits are indexed. D. The government has to make higher interest payments with higher inflation rates.