1.What has been the greatest cause of economic inequality in recent years? Inequality in wages 2. Which of following factors is the primary reason for the Great Divergence in the United States? Widening wage gap between middle and top earners.…
1.Which of the following is an example of government regulation? The legal prohibition of an act with negative externalities 2. Why is the Coase theorem often inapplicable to real world situations? Transaction costs are rarely low 3. Which of the…
1.The law of diminishing returns states that ______________. adding more of one factor of production eventually yields smaller increases in output 2. How do economic profit and accounting profit differ? Economic profit includes implicit (opportunity) costs and accounting profit does…
1.Imagine Firm A has an absolute advantage in cereal production over Firm B. If both firms are producing 10 boxes of cereal an hour, what is true about the marginal cost of the 11th box of cereal? The marginal cost…
1.GDP measures the value of __________. final goods and services 2.What are two methods of calculating GDP? income and expenditure approach 3.Why does the multiplier effect exist? Because a change in expenditure leads to changes in income, generating further spending…
1. The price and quantity pairs that are graphically depicted in a demand curve can be taken from a _______________. demand schedule. 2.The price elasticity of demand measures the responsiveness of _____________. the quantity demanded of a good to a…
1) Which of the following is an example of a barrier to entry? High research and development costs 2). The downward slope of a monopolistically competitive market’s demand curve signifies ____. that firms in the industry have a degree of…
Week 3 Quiz [100% Score] 1.The government taxes consumers in order to _________All of the these. 2.Horizontal equity is most closely aligned with ______________ taxes.proportional 3.If the market for loanable funds is at equilibrium and the interest rate rises, what…
