In an economy that did not use money, but in which barter was exclusively employed for the exchange of goods, inflation
A) could not occur.
B) would be almost entirely the result of speculation.
C) would benefit buyers more than sellers.
D) would redistribute real income rather than money income.
E) would strike hardest at those on fixed incomes.
A
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Suppose a perfectly competitive firm can produce 20,000 bushels of corn a year at an output at which marginal cost equals marginal revenue. The market price of corn per bushel is $2.00
The firm's total costs per year are $50,000 and fixed costs per year are $25,000. In the short run, this firm should A) shut down. B) continue producing until the price of corn increases. C) produce 20,000 bushels of corn because, although they are losing money, they are losing less than if they shut down. D) produce 40,000 bushels to try to increase economic profit.
Government failure occurs when
A. Dealing with a natural monopoly. B. Public goods are present. C. Government intervention fails to improve economic outcomes. D. There is market power.
Which of the following factors would shift the supply curve for ice cream to the right?
a. a new cooling technology emerges b. the price per unit increases c. the number of producers in the market for ice cream increase d. Both A&C
Which of the following statements is false?
A. The price mechanism is most important under capitalism. B. The five-year plan was the main economic plan of the former Soviet Union. C. In most fascist economies, the means of production was left in private hands, with varying degrees of government interference. D. The main criticism of socialist countries is that they gave their citizens too many benefits.