The basic concern of economics is a to prove that

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43. The basic concern of economics is: A) to prove that capitalism is better than socialism. B) to study the choices people make. C) to use unlimited resources to produce goods and services to satisfy limited wants. D) to keep business firms from losing money.
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ECON 2106 Shelby Frost Final Exam 11:00am TR Fall 2007 Version A Page 13 44. The ________ the time period, the ________ is the present value of a given future payment, all other things held constant. 45. When innovations by one firm are quickly emulated and improved on by rival firms in the same industry or in other industries, this is: 46. Economists who are asked to choose between two different government policies may disagree because: 47. An industry with a large number of relatively small firms producing differentiated products in a market with easy entry and exit firms is: A) an oligopoly. C) one of monopolistic competition. B) a monopoly. D) a duopoly. 48. Suppose Congress passed a new tax system, such that all federal, state, and local taxes were replaced with one tax: a tax of $14,000 for every person 18 and over. This new tax system would clearly improve: 49. A fixed cost: 50. In perfect competition, the assumption of easy entry and exit implies that:
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ECON 2106 Shelby Frost Final Exam 11:00am TR Fall 2007 Version A Page 14 51. If the United States increases tariffs on imports of lumber from Canada, which causes the price of lumber to increase in the United States, then the equilibrium price of new homes in the United States will ______ and the equilibrium quantity of new homes in the United States will _______. A) decrease; increase C) increase; decrease B) decrease; decrease D) increase; increase Use the following to answer question 52: Figure: The Budget Line
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