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
Why does the history of the U.S. matter? (a) Historical knowledge helps us understand the forces that shaped the current economy. (b) The lessons of the past help us avoid future mistakes. (c) Historical knowledge helps us identify who or what is most likely to fuel future economic prosperity. (d) All of the above. […]
Date: September 10th, 2020
A government fulfills a protective function when it (a) gives cash payments to the poor. (b) provides funds for flood control projects and builds highways. (c) prevents illegal seizure of private property. (d) redistributes income. ANSWER (c)
Date: September 10th, 2020
In which case did the U.S. Supreme Court’s review powers extend to actions by the other two branches of the federal government and not merely to the laws of the states? (a) Marbury v. Madison (1803) (b) McCulloch v. Maryland (1819) (c) Gibbons v. Ogden (1824) (d) Dartmouth College v. Woodward (1819) ANSWER (a)
Date: September 10th, 2020
What do diseconomies of cities include? (a) Pollution (b) Crime (c) Congestion (d) All of the above ANSWER (d)
Date: September 10th, 2020
Wal-mart (a) is the railroad of the late nineteenth century. (b) provides an example of how one large business enterprise still can seize market power to restrict entry and exit. (c) holds monopoly power in retail. (d) exists at the expense of consumers. ANSWER (a)
Date: September 10th, 2020
