Which of the following is a key economic function of government?
a. protects and enforces property rights and contracts
b. issues passports, visas, and foreign travel advisories
c. researches the causes and cures of illness and disease
d. awards medals and honors for cultural achievement
a. protects and enforces property rights and contracts
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Assume that an inflationary gap must be closed by reducing aggregate expenditures. If consumers refuse to cut spending on consumption and producers won't cut demand for investment goods, the President:
a. can do nothing. b. must build more roads. c. must borrow from Wall Street. d. must increase Social Security expenditures. e. must cut government spending.
Which of the following is the worst-case scenario for a consumer?
a. Perfect competition b. Perfect price discrimination c. Single-price monopoly d. Peak load pricing
How is it possible to have a separation between ownership and control of a major corporation? What specific type of market imperfection can cause this?
The vertical portion of the AS curve
A. is a short-run phenomenon. B. shows national output rising with the price level. C. does not shift over time, due to economic growth. D. represents the maximum output level.