In a market economy,
a. households decide which firms to work for and what to buy with their incomes.
b. firms decide whom to hire and what to make.
c. a central planner makes decisions about production and consumption.
d. Both a and b are correct.
d
You might also like to view...
The purchase and sale of government securities by the Fed is called ________.
A. money market transactions B. federal funds market C. open market operations D. term auction facility
The term "foreign currency" refers to foreign
I. coins II. notes III. bank deposits A) II only B) II and III only C) I and II only D) I, II, and III
Suppose there are 100 identical firms producing package delivery services. One of the firms finds that when it has to pay a wage rate of $7, it hires 20 delivery people. The firm charges an average price of $10 to deliver a package. From this information, we know that the package delivery industry is hiring a total of:
a. 100 workers. b. 200 workers. c. 700 workers. d. 2,000 workers. e. 10,000 workers.
In what market type does an individual firm face a perfectly elastic demand curve?
A) perfect competition B) monopolistic competition C) oligopoly D) monopoly