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Need help with these few multiple choice questions 1. To describe recessions as a cluster of errors in the economy means a. markets never clear,

Need help with these few multiple choice questions

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1. To describe recessions as a "cluster of errors" in the economy means a. markets never clear, even in the best of times. b. something has caused people to systematically misread the signals provided by the market process. c. the laws of supply and demand have failed to work. d. monopolies force people out of work. 2. Economic growth is supported by a. the rule of law. b. competent and honest government officials. c. an educated populace. d. an openness to international trade and investment. e. all of the above. 3. To economize means to a. put economic theory to work. b. allocate available resources in a way that yields the most value to the economizer. c. behave in a selfish rather than generous manner. d. conserve as much as possible for future use. 4. What, according to the textbook, accounts for the federal budget surplus in the late 1990s? a. A move toward virtue on Capital Hill b. Strong economic growth during that period c. Huge increases in tax rates d. A successful beggar-thy-neighbor strategy 5. People specialize in activities in which they have a comparative advantage a. if they know they are more productive than anyone else in the particular activity. b. only if they understand the logic of comparative advantage. c. when they expect to obtain more of whatever they want by doing so. d. when all else fails

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