Question 32 2 pts Over the long run, the best way to succeed in business is to 0 keep your costs and prices as low as possible. 0 lower your costs and keep your prices as high as possible. 0 keep your prices as high as possible and worker's wages as low as possible. Question 33 2 pts Crony capitalism is a system in which success in business depends on close relationships between business people and government ofcials for the purpose of obtaining special favors. 0 True 0 False L ,1 Question 36 2 pts Moral hazard occurs when a business is insulated from risk and therefore behaves differently than it would if it were fully exposed to risk. 0 True 0 False Question 37 2 pts Which of the following is a true statement? 0 In the past 30 years or so, the percentage of Americans who lived in a household that received government assistance has almost doubled Q As a percentage of the whole, the size of the federal government has increased over the past ten years or so. 0 An answer to our many of our economic problems is the establishment of pro-growth policies. 0 All of the above. Question 38 2 pts Debt levels have climbed dramatically since the nancial crises of 2008. 0 True 0 False Question 39 2 pts Whether you have an interest in economics or not, whether you understand how the economy works or not, or whether you have a job or not, you are effected by economic events. 0 True O False D Question 34 2 pts Who was Gerhard Schroder? O He was the German chancellor from 1998 to 2005. O During his second term as the German chancellor he lowered taxes, revamped unemployment benefits and streamlined labor laws. O Mr. Schroder's shakedown of the welfare state insulated Germany against the debt mess that would later befall Southern Europe. O Mr. Schroder made it easier in Germany for businesses to fire employees and he decreased the jobless benefits for people who were able but unwilling to accept work. O All of the above. D Question 35 2 pts Erratic inflation distorts price signals, which has a negative effect on investments. O True O FalseD Question 40 2 pts What is the main idea in the book The 4% Solution? 0 We have to increase government spending by at least 4% annually in order to achieve full-employment. O The Federal Reserve should set a 4% ination rate as the optimal rate to achieve full-employment and stable prices. 0 We need rules and regulations and a tax system thatwill foster pro-growth attributes ln order to achieve this, we should strive to grow by at least 4%. Q We have to increase federal income taxes by at least 4% in order to start paying off our national debt. U Question 41 2 pts Capitalism is an economic system in which the means of production are privately owned and operated for prot. 0 True 0 False