D.budget surpluses are continuously incurred.
8) the fact that the major indicator of enterprise success in the soviet union and
pre-reform china was the quantity of output implied that:
a.product quality was neglected.
b.production costs were minimized.
c.product-mix met consumer needs.
d.technological advance was too rapid.
9) The main purpose of the antitrust laws is:
A.to encourage firms to produce where P > MC.
B.the elimination of both negative and positive externalities.
C.to prevent the monopolization of industries.
D.to regulate natural monopolies.
10) Since 1980 the difference between the earnings of college graduates and high
school graduates has:
A.fallen, thereby increasing income inequality.
B.increased, thereby increasing income inequality.
C.remained constant.
D.increased, thereby decreasing income inequality.
11) (consider this) european economists generally agree that:
a.high european rates of inflation reflect demand-pull rather than cost-push forces.
b.high european rates of poverty can be reduced by higher transfer payments.
c.high european unemployment rates have resulted from government policies and union
contracts that increase the costs of hiring and reduce the individual’s opportunity cost of
being unemployed.
d. european trade deficits stimulate the european economies.