Which of the following best describes private enterprise?
a. The means of production (resources and businesses) are owned and operated by government.
b. The means of production (resources and businesses) are owned and operated by private individuals or groups of private individuals.
c. Economic decisions are determined by individuals.
d. Economic decisions are determined by government.
b. The means of production (resources and businesses) are owned and operated by private individuals or groups of private individuals.
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Keeping in mind economists' definition of factors of production, which of the following is NOT a factor of production?
A) money B) low-skilled labor C) coal D) an engineer
A $0.50 tax on lemons currently generates $200 in revenues per day. If the tax were increased to $2, the revenues generated would drop to $70. This tells you that in this range of tax rates the:
A. quantity effect outweighs the price effect. B. quantity effect outweighs the income effect. C. price effect outweighs the quantity effect. D. price effect outweighs the income effect.
The formula for elasticity is given by
A. (Q/P)(1/slope). B. ?Q/Q/?P/P. C. (P/Q)(slope). D. (Q/P)(slope).
In developing countries, government expenditure levels are most closely related to:
A. what will bring about regime change. B. considerations about what will keep the existing government in power. C. what activist fiscal policy is necessary to achieve potential output. D. what is necessary to achieve long-term macroeconomic objectives.