Crony capitalism is present when
a. businesses are either implicitly or explicitly prohibited from making donations to political candidates.
b. businesses either implicitly or explicitly provide political decision-makers with contributions and other forms of political support in "exchange" for government favors that will improve their profitability.
c. rule of law is present and government officials treat all citizens alike.
d. government officials spend taxpayer funds only on productive projects.
B
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The Phillips curve relates the inflation rate to
a. the unemployment rate. b. GDP. c. disposable personal income. d. the interest rate.
If John says the price of gasoline is too high and Paul says prices are determined by the action of the marketplace, then John has made a(n):
a. positive economic statement, and Paul has made a normative economic statement b. positive economic statement, and Paul has made a positive economic statement c. normative economic statement, and Paul has made a normative economic statement d. normative economic statement, and Paul has made a positive economic statement e. improper economic statement, and Paul has made a proper economic statement
Risk premiums do all of the following except
A. Help explain why banks charge different customers different interest rates. B. Allocate limited resources only to the safest investors. C. Compensate people who finance risky ventures. D. Are the difference in the rates of return on risky and safe investments.
Refer to the graph shown. If the firm maximizes profit, the marginal cost of its product will be:
A. $6. B. $10. C. $8. D. $4.