Solved by verified expert :31. Prices in factor
markets are primarily determined by:
A) government
regulation.
B) big business
collusion.
C) the interaction
of business supply with household demand in the factor markets.
D) the interaction
of household supply with business demand in the factor markets.
E) none of the
above.
32. The term business
cycle refers to:
A) periodic bouts
of inflation and recession that occur in a capitalist economy.
B) regular
government intervention in the economy that is intended to reduce income
inequality.
C) periodic
government intervention into the economy that is intended to address market
failures.
D) seasonal changes
in the mix of goods and services produced by an economy.
E) expected
declines in the level of economic activity that occur in socialist economies.
33. Macroeconomic policies
for stabilization include:
A) fiscal and
monetary policies.
B) pollution
policy.
C) lending policy.
D) business demand
policy.
E) none of the
above.
34. How
does economics contribute to the debates about equity?
A) It gives us all the answers.
B) It tells us who is right and who
is wrong.
C) It helps to analyze the costs and
benefits of different redistribution systems.
D) It can make the decisions about
who gets what in the economy.
35. Laissez-faire means
what:
A) more government
regulation.
B) leave us alone.
C) don’t be so
lazy.
D) kind of like a
county fair.
36. An economy dominated
by imperfect competition is characterized by
A) too much output,
and low prices compared to perfect competition.
B) same amount of
output, and low prices compared to perfect competition.
C) too little
output, and low prices compared to perfect competition.
D) too little
output, and high prices compared to perfect competition.
E) too much
output, and high prices compared to perfect competition.
37. Which of the following
is not true?
A) Adding to the
stock of capital goods now requires a sacrifice of future consumption goods.
B) Adding to the
stock of capital goods now requires a sacrifice of present consumption.
C) Each claim or
title to ownership of a capital good is subject to valuation by the market.
D) Capital goods
represent goods that can be used as factor inputs for further production.
E) Capital goods
represents inputs that are themselves outputs of the economy.
