What is the economic problem? How does a command economy solve the economic problem?
What will be an ideal response?
The economic problem is that given scarce resources, how exactly do large, complex societies go about answering the basic economic questions? A command economy answers the questions through some centralized authority making decisions about what to produce, how to produce it, and how to distribute it.
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A decrease in labor costs will cause aggregate ________.
A. demand to decrease B. supply to decrease C. supply to increase D. demand to increase
Monopolists are able to price discriminate because
A) of differing willingness to pay among consumers. B) of differing price elasticities of supply. C) they have constant marginal cost. D) they have constant average cost.
Milton Friedman first proposed the hypothesis that individuals consume a fraction of their expected, or ________, income
A) disposable B) net C) attainable D) permanent E) life-cycle
Identify the statement which is true of a barter system? a. In a barter system, trade will only occur if there is a double coincidence of wants. b. In a barter system, an individual offers coins to get a good or service
c. In a barter system, an individual offers a commodity money to get fiat money. d. In a barter system, different kinds of money are exchanged for one another. e. In a barter system, individuals are self-sufficient.