The self-correcting tendency of the economy means that rising inflation eventually eliminates:
A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.
Answer: D
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All of the following groups benefited from immigration to the U.S. in the late 19th and early 20th century except
a. manufacturing and mining companies. b. retailers. c. railroad companies. d. unskilled native workers.
The term utility refers to the:
A. pleasure or satisfaction a consumer receives upon consuming a good. B. necessity of a good. C. price of a good. D. number of goods a consumer has.
In a competitive market, a negative externality creates a deadweight loss because
A) the cost of the externality is double counted. B) a harm is generated. C) price equals social marginal cost. D) price equals private marginal cost.
As the probability of detecting shirking increases, the size of the bond necessary to deter shirking
A) also increases. B) stays the same. C) decreases. D) increases at an exponential rate.