QUESTION 12

If an economy is experiencing unemployment, it is operating at a point

A. on its production possibilities curve (PPC).

B. below its PPC.

C. beyond its PPC.

D. at the horizontal intercept of its PPC.

E. at the vertical intercept of its PPC.

QUESTION 16

The percentage of the U.S. population living in poverty

A. shows a long-term increase.

B. is holding steady over the long run.

C. is not a serious economic problem.

D. decreased significantly in the past decade.

E. fluctuates dramatically from year to year.

QUESTION 18

Discrimination means that

A. equals are treated unequally.

B. unequals are treated unequally.

C. equals are treated equally.

D. individuals are treated differently.

E. all of the above.

QUESTION 28

The capture theory of regulation suggests

A. in the absence of regulation, consumer welfare is often captured by firms in the market.

B. the lost consumer welfare due to unfair business practices can be offset through government regulation.

C. when market failure exists, regulation is appropriate.

D. the regulators of an industry are often "captured" by the firms in the market.

E. none of the above.

QUESTION 29

Approximately what percent of sales in the United States are made by corporations?

A. 40

B. 50

C. 60

D. 70

E. 90