Which of these is most likely to reduce the potential output of an economy?
a. An increase in the size of the labor force
b. A deterioration in the quality of the labor force
c. A decrease in the cost of using computers
d. A decrease in the price level
e. An increase in the price level
b
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If a typical firm in a perfectly competitive industry is earning profits, then
A) new firms will enter in the long run causing market supply to increase, market price to fall, and profits to decrease. B) all firms will continue to earn profits. C) the number of firms in the industry will remain constant in the long run. D) new firms will enter in the long run causing market supply to decrease, market price to rise, and profits to increase.
Which of the following is not a basic freedom guaranteed by the U.S. Constitution?
A) freedom of religion B) freedom to trade C) freedom of the press D) freedom of speech B) freedom to trade
Before the Great Depression the popular view of government was:
A. activist; and after the Great Depression, the popular view of government was laissez-faire. B. laissez-faire; and after the Great Depression, the popular view of government was activist. C. laissez-faire; and after the Great Depression, the popular view of government was still laissez-faire. D. activist; and after the Great Depression, the popular view of government was still activist.
If income were distributed according to the egalitarian principle of "to each exactly the same," then one problem would be that
A. productivity levels would probably become too high. B. there would be little or no incentive for individuals to take risky, hazardous, or unpleasant jobs. C. individuals would have an excess desire to invest in their own human capital. D. too many individuals would want to take risky jobs.