A statement of owner’s equity shows

. In the early 1980s, many people found themselves unable to purchase new homes because of   a.  rising prices and interest rates.   b.  rising prices and falling interest rates.   c.  new government restrictions on mortgages for first-time buyers.   d.  increases in income tax rates.

“Economic exploitation” is measured by   a.  the sum of all input costs, both direct and indirect.   b.  the difference between the value of output a worker adds and what she receives.   c.  the difference between a monopoly’s profit and the profit of a competitive firm.   d.  the average wage of a skilled worker divided by the average wage of an unskilled worker.

If a product exhibits decreasing returns to scale, then the average cost of making the product will ______ as a company produces more of it?    a.  Increase.   b.  Decrease.   c.  Remain the same.   d.  There is insufficient information provided to ANSWER the question.

Which of the following most accurately describes the “Fisher effect?”    a.  Interest rates increase after inflation and decrease after deflation, but with a long lag.    b.  Interest rates are independent of inflation and deflation.    c.  Interest rates increase after inflation, but are not affected by deflation.    d.  Increasing interest rates precede inflation and decreasing interest rates precede deflation. 

Residents of the developing American colonies lived _______ lives compared to people living in the advanced countries of that time because ________.   a.  better; of favorable protections from England   b.  better; of high levels of output per worker.   c.  worse; of unfavorable taxation   d.  worse; of the inaccessibility of both capital and finished machine goods.

A ranch business with a debt/asset ratio of 0.20 would be in a relatively strong financial condition.

A _________ is an agreement under which stockholders of several formerly-competing companies turn over their shares to a group that exercises voting control over the companies.   a.  trust   b.  gentleman’s agreement   c.  holding company   d.  pooling arrangement

What best describes the reason for the large migration of African-Americans from the south to the north during the 1920s?   a.  This movement was just a continuation of the same trend that had been occurring in large scale since the end of the Civil War.    b.  African-Americans moved north to reunite families that had been divided during the many years of slavery.   c.  The African-Americans who had worked in the south had mostly been employed in the manufacturing sector, which suffered a downturn in the 1920s.    d.  Employers in the North who had traditionally hired many immigrants had to search elsewhere when immigration restrictions were imposed.

Fiscal policy aims to influence the overall health of the economy through changes in   a.  the money supply.   b.  government spending and tax rates.   c.  interest rates.   d.  international exchange rates.