73. Both a pre-requisite and a co-requisite to long-term economic growth is: (a) contraction of the money supply; (b) rising expectations for business earnings; (c) a marginal propensity to consume close to zero; (d) a balanced federal budget.

74. Perhaps the most fundamental relationship in all of economics is which of the following? (a) spin rates and curve balls; (b) human capital accumulation and the performance of the VIX index; (c) real disposable income and personal consumption expenditures; (d) money supply growth and in-flow of immigrants.

75. When increases in the money supply are said to have no lasting impact upon the level and composition of output, we say that money is: (a) neutral; (b) inflationary; (c) green; (d) transitory.

76. According to Keynes's "liquidity preference theory," interest is: (a) the ability to stay awake in your economics class; (b) a reward for saving; (c) a reward for surrendering liquidity temporarily; (d) a moral source of income to lenders.

QUESTION 15 Which of the following best explains the view that nothing matters except that individuals have met a basic level of need for goods, such as housing or medical care, and that once they have met this basic level, income distribution is irrelevant? O a. utilitarian social welfare function O b. Rawlsian social welfare function O c. commodity egalitarianism O d. First Fundamental Theorem of Welfare Economics QUESTION 16 The First Fundamental Theorem of Welfare Economics states that: O a social efficiency can be achieved if and only if government intervenes in the economy. O b. the competitive equilibrium, where supply equals demand, maximizes social efficiency. O c. social efficiency cannot be achieved in any competitive equilibrium. O d. the competitive equilibrium, where supply equals demand, can always be achieved through government intervention. QUESTION 17 Consumer surplus is greater than producer surplus when the demand curve is producer surplus is greater than consumer surplus when the demand curve is O a. elastic; elastic O b. inelastic; elastic O c. inelastic; inelastic O d. perfectly elastic; perfectly inelastic QUESTION 18 Suppose Jon likes to eat both pizza and hamburgers. As Jon consumes less pizza and holds steady his consumption of hamburgers, the marginal utility of a piece of pizza , and the marginal utility of a hamburger O a. increases; is unchanged O b. decreases; is unchanged O c. decreases; decreases O d. increases; increasesThe most important signal for the market to reach equilibrium is. O a. The price. O b. Strict government price controls O c. Supply elasticity. O d. Consumer income