In a market economy, economic activity is guided by

a. the government.
b. public-interest groups.
c. central planners.
d. self-interest and prices.

d

Economics

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The interest rate effect suggests that

A) an increase in the price level decreases the interest rate, which causes businesses and consumers to reduce desired spending. B) an increase in the price level increases the interest rate, which causes businesses and consumers to reduce desired spending. C) an increase in the price level increases the money supply, which causes businesses and consumers to increase desired spending. D) a decrease in the price level decreases the interest rate, which causes businesses and consumers to reduce desired spending.

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Economics

[NeedAttention]

Exhibit 30-1

?

A. Curve X, because if there is a negative externality, external costs are associated with it: social costs = external costs + private costs, therefore the marginal social cost curve must lie above the marginal private cost curve. B. Curve Y, because if there is a negative externality, negative external costs are associated with it: social costs = negative external costs + private costs, therefore the marginal social cost curve must lie below the marginal private cost curve. C. Curve X, because if there is a negative externality, external benefits are associated with it: social costs = external benefits + private costs, therefore the marginal social cost curve must lie above the marginal private cost curve. D. Curve Y, because if there is a negative externality, negative external benefits are associated with it: social costs = negative external benefits + private costs, therefore the marginal social cost curve must lie below the marginal private cost curve.

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Economics

The ownership of radios increased from ___ percent in 1920 to ___ percent in 1930

a. 10; 70 b. 5;10 c. less than one; 40 d. Radio was not popularized beyond hobbyists until the 1930s

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Economics

Davy's Doggie Daycare rents a warehouse and field for $2,000 a month to house its boarding pooches. Farmer Fred owns the property, he used to use it for farming and made $3,000 a month, but has since retired. What is the cost of the warehouse and field to Davy?

A. It is an explicit cost of $2,000. B. It is an implicit cost of $3,000. C. It is an implicit cost of $0. D. There is both an explicit and implicit cost totaling $5,000.

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Economics