The "invisible hand" concept refers to the:
A. Guiding function of prices in a market system
B. Implicit influence that the government has on the actions of firms
C. Regulatory structure that markets must operate in
D. Underlying money flows that promote the trading of goods and services
Answer: A
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A consumption tax system is likely to benefit
A) higher income individuals. B) an individual who, regardless of income, is a large consumer. C) corporations. D) lower income individuals.
Subsistence production is
a. produced on the farm for a city market b. produced for export c. produced for sale to neighboring villages d. produced for consumption by the producer e. none of the above.
The purpose of social regulation is
A) to force a firm to produce at the point where marginal cost equals marginal revenue. B) to control the quality of service provided by a monopolist. C) to control the price that regulated enterprises are allowed to charge. D) to focus on the impact of production on the environment and society, the working conditions under which goods and services are produced, and sometimes the physical attributes of goods.
Suppose the following situation exists for an economy: Kt+1/N = Kt/N. Given this information, we know that
A) saving per worker equals depreciation per worker in period t. B) saving per worker is less than depreciation per worker in period t. C) saving per worker is greater than depreciation per worker in period t. D) the saving rate fell in period t. E) steady state consumption is equal to the golden rule level of steady state consumption.