Firms produce too little output
a. when tort laws are not enforced
b. in perfectly competitive markets
c. to achieve economic efficiency
d. when they have monopoly power
e. when there are no remaining Pareto improvements
D
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The main purpose of the Fed is to:
A. maintain the proper functioning of our money system. B. regulate interest rates. C. print Federal Reserve Notes. D. regulate financial institutions.
GDP can be calculated by all of the following methods except
A. Adding up the spending on goods and services by business, government, households, and foreigners, and subtracting imports. B. Adding up all income and expenses by consumers and businesses. C. Adding up all of the receipts of households, government, and business. D. Adding up the "value added" at every stage of production in the economy.
In reality, all economic systems are
A. mixed. B. capitalistic. C. democratic. D. socialistic.
In the absence of trade between the two countries, the price of rice in the U.S. in terms of radios would tend to be
A. 1/2.
B. 1/5.
C. 200.
D. 500.