Because of the scarcity of resources, every country must answer the three basic economic questions: ________________; ___________________; and _________________.
Fill in the blank(s) with the appropriate word(s).
what to produce; how to produce; for whom to produce
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The progressive income tax is a money transfer system—from the taxpayer to government—and it is in the nature of this system that during recessions, less is taken from people than is taken in periods of prosperity. It is in this sense that the progressive income tax system is regarded by economists as
a. an unfair intervention in people's lives b. a countercyclical discretionary force c. a system that is unrelated to government spending d. an automatic stabilizer e. volatile and capricious
Barriers to free trade impair efficiency in the international allocation of resources.
Indicate whether the statement is true or false.
Answer the following statement true (T) or false (F)
1) Oligopoly firms may produce either standardized or differentiated products. 2) The term imperfect competition refers to every market structure besides pure competition. 3) Firms in a monopolistically competitive industry have no reason to engage in nonprice competition because their products are uniquely different from other sellers in the market. 4) Although individual purely competitive firms can influence the price of their product, these firms as a group cannot influence market price.
The Jeans Store sells 7 pairs of jeans per day when it charges $100 per pair. It sells 8 pairs of jeans per day at a price of $90 per pair. The marginal revenue of the eighth pair of jeans is
A) $20. B) $90. C) $100. D) $700.