In a market economy, which of the following determines the answer to the WHAT to produce question?
A. Direct negotiations between consumers and government.
B. Government directives.
C. Prices and profit.
D. A democratic vote by all consumers.
Answer: C
You might also like to view...
Tory applies for a line of credit which she intends to use for a once in-a-lifetime dream vacation. This transaction is subject to
a. no federal law. b. the Consumer Leasing Act. c. the Consumer Product Safety Act. d. the Truth-in-Lending Act
Which of the following is not a form of capital?
a. loanable funds b. John Deere farm machinery c. sourdough used to make bread d. sourdough bread on your Thanksgiving dinner table e. sourdough bread used to make a tuna sandwich at Timpone's restaurant
Paul wins a $500 watch in a sweepstakes and decides to keep it, even though he says he would have preferred to win $500 cash. Knowing Paul's preferences, how can we explain his decision to keep it?
A. Paul has a cognitive bias; he is ignoring a nonmonetary opportunity cost of already owning the watch. B. Paul has a cognitive bias, and it leads him to value the watch more because he owns it. C. Paul's implicit cost of ownership makes him feel as though he should keep the watch. D. All of these are true.
Hunter is an ambitious, competitive person who has always tried to be the best at everything he does. Consider the following job options facing Hunter and choose the option that will likely afford him the highest wage
a. elementary school teacher who works 9 months of the year b. manager in a large firm who earns an annual salary with no potential for bonuses or commissions c. salesperson who earns a small base salary plus a percentage of the sales he makes d. local television news anchor who works during the day