The police powers of the government include (a) price fixing. (b) licensing. (c) inspection. (d) all of the above. ANSWER (d)
Date: September 10th, 2020
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)
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
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)
Date: September 10th, 2020
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
Date: September 10th, 2020
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)
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
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 […]
Date: September 10th, 2020
Government regulation in the form of subsidies, tariffs, licensing, and inspections does which of the following? (a) Creates rents for businesses (b) Offers profits to some businesses at the expense of others (c) Encourages the inefficient use of productive resources (d) All of the above ANSWER (d)
Date: September 10th, 2020
Creative destruction includes all of the following except (a) The rise of the automobile industry at the expense of the carriage industry (b) The rise of the computer industry at the expense of the typewriter industry (c) The destruction of all capital during economic busts (d) There is no except; all of the above are […]
Date: September 10th, 2020
