Profit-maximizing industrialists are concerned with both revenues and costs. Transportation and production costs are an important part of total costs. Both are impacted by (a) location and power sources. (b) the cost of managing large quantities of productive resources found anywhere along the production chain. (c) the ability to concentrate or group resources in the […]
Which would be a liability on a balance sheet of a commercial bank? a. An outstanding commercial loan b. A U.S. Treasury bond c. A certificate of deposit issued by the bank d. Vault cash e. None of the above ANSWER C
The police powers of the government include (a) price fixing. (b) licensing. (c) inspection. (d) all of the above. ANSWER (d)
Schumpeter asserts all of the following except (a) A strong middle class fosters growth in society’s entrepreneurial base. (b) Entrepreneurs are the leading force behind technological advancement. (c) Invention and innovation are unnecessary in a growing economy. (d) Secured property rights encourage risk-taking entrepreneurial behaviors. ANSWER (c)
Economies of scale result as a firm increases in size and expands its use of resources. Productivity increases and fixed production costs are spread over an increased number of goods and services. Which of the following are types of economies of scale? (a) Command economies (b) External economies (c) Open economies (d) Closed economies […]
Which of the following cases was most important in arguing that the “public good” was best served by competition? (a) Marbury v. Madison (1803) (b) McCulloch v. Maryland (1819) (c) Gibbons v. Ogden (1824) (d) Charles River Bridge v. Warren Bridge (1837) ANSWER (d)
The money supply is determined a. only by the Fed. b. by the Fed and banks. c. by the Fed, banks, and the public. d. by congress. e. by the President. ANSWER C
Which of the following reduces U.S. potential for economic growth by reducing household incentive to use private property most efficiently and effectively? (a) Personal income taxes (b) Farm subsidies and import tariffs (c) Auto bailouts (d) Regulation in the health care industry ANSWER (a)
Which of the following is an example of external economies? (a) The cost of per unit produced in manufacturing goods falls as the industry size grows. (b) The cost of per unit produced falls as the firm size, not the industry size, grows. (c) The cost of per unit produced in manufacturing goods increases as […]
If a fear of increased bankruptcies of firms causes banks to increase their reserve to deposit ratio, then a. the money supply and money multiplier will rise. b. the monetary base and the money multiplier will fall. c. there will be no change in the money multiplier, but the money supply will fall. d. the […]
