Which statement best describes a capitalist economy?
a. Government policies determine the production and the allocation of goods and services
b. The role of individual self-interest is relatively unimportant because government makes most of the economic decisions
c. Government policies determine the production, but not the allocation, of goods and services
d. Society determines production and the allocation of goods and services only through markets
d. Society determines production and the allocation of goods and services only through markets
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The use of eminent domain is probably more justifiable if the parcels of land needed for a project are
A) contiguous. B) noncontiguous. C) owned by the federal government. D) owned by one party instead of many parties.
If the donut industry is perfectly competitive and is in long-run equilibrium, then the price of a donut
A) is greater than marginal cost. B) is greater than short-run average cost. C) is greater than long-run average cost. D) equals long-run average cost.
A partnership can raise funds for expansion in which of the following ways?
A) issuing stock through secondary markets B) taking on more partners C) issuing stock through financial markets D) all of the above
Which statement is true?
A. The Federal Open Market Committee has very little power. B. The Federal Reserve rarely raises or lowers the discount rate. C. Our money supply grows at a rate of between three and four percent a year. D. The Federal Reserve rarely changes the reserve requirements.