Exam 3: Economic Decision Makers

The difference between fiscal policy and monetary policy is that

Which of the following is the best example of the ownership of the resource called capital

The movement of households from rural to urban settings reduced the degree of specialization in household production.

Which of the following is a major advantage of the sole proprietorship?

Contracts are enforced by

The second largest source of tax revenue for the federal government is

Natural monopolies occur when

Which of the following is not a not-for-profit institution?

Some people have argued that government should provide only those goods that we would truly define as public goods.If so, which of the following should government produce?

A major disadvantage of the corporate form of business is limited liability.

As the real wage increases, the opportunity cost of working outside the home increases.

A common assumption that economists make about the behavior of elected officials is that they try to

If one dollar is initially equal in value to one euro and demand for euros increases, then each dollar will be worth

What part of federal government spending has grown the most slowly in recent decades?

A progressive tax means

Which of the following represents the best example of personal interest?

In the following situation, the tax system is

The increased labor force participation of married women in the United States is most often explained by

Rationality in the household decision-making process means that

Import restrictions usually benefit domestic producers at the expense of domestic consumers.