ECON 3001 Midterm Quizzes

Which of the following would have the greatest positive impact on a country's domestic economy? A) A decrease in the confidence of foreign investors in the country's economy. B) An increase in spending on imports from other countries. C) An increase in spending by foreigners on the country's exports. D) A decrease in the incomes of consumers in foreign countries.

An increase in spending by foreigners on the country's exports.

Which of the following statements is correct? A) Consumer confidence is extremely important and can have a great impact on future economic activity. The same is not true of business confidence. B) Because it has historically remained steady, consumer and business confidence has only a minimal impact on future economic activity. C) Because it is subject to change, and frequently does, consumer and business confidence has only a minimal impact on future economic activity. D) Consumer and business confidence is extremely important and can have a great impact on future economic activity

Consumer and business confidence is extremely important and can have a great impact on future economic activity

Which of the following conditions ensures that excess profits cannot persist in a perfectly competitive market over the long run? A) Complete information is available to all market participants. B) Large number of firms in the industry. C) Outputs of the firms are perfect substitutes for one another. D) Ease of entry into the market.

Ease of entry into the market