Answer the following statements true (T) or false (F)
1. The fundamental economic question regarding the distribution of output in the economy is equivalent to the question of who will produce the output.
2. The concept of consumer sovereignty refers to the situation where consumers have the right to vote for the board of directors of large corporations.
3. In analyzing a market system, economists often assume that firms will choose the production techniques that will give them the maximum revenues.
4. Economic efficiency entails producing a certain output with the minimum number of units of inputs.
1. FALSE
2. FALSE
3. FALSE
4. FALSE
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The output at which average variable cost is a minimum is ________ than the output at which ________ is a minimum
A) the same as; average total cost B) the same as; marginal cost C) less than; average total cost D) less than; marginal cost
We would expect, all else equal, that:
A. lower taxes would reduce unemployment. B. higher taxes would reduce unemployment. C. taxes would have no effect on unemployment. D. taxes would be negatively related to unemployment.
If an economy produces 3,000 units of output with a money supply of $500 and a velocity of 9, we know the price level must be:
A. $1.50. B. $2. C. $4.50. D. $9.
This group is most likely to be harmed by inflation.
A. Debtors B. Persons on fixed incomes C. The young D. Foreigners