In a pure capitalist economy, "what to produce" is determined by
A. government central planning committees.
B. the price mechanism.
C. the credo: "Each according to his ability, to each according to his needs".
D. all of the choices are true.
B. the price mechanism.
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Does the presence in the real world of intraindustry trade prove or disprove the classical or Heckscher-Ohlin models? Explain
What will be an ideal response?
Which of the following is a current example of a government-granted cartel?
A) the "Big Three" accounting firms B) the U.S. automobile industry C) U.S. professional baseball D) the U.S. airline industry
If the total cost of producing 6 units is $228 and the total cost of producing 7 units is $245, what is the marginal cost of producing the seventh unit?
a. $35 b. $245 c. $3 d. $38 e. $17
Refer to the above figure. Which of the following statements is TRUE?
A. Panel A shows a change in quantity demanded and Panel B shows a change in demand. B. Panel A shows a decrease in demand and Panel B shows an increase in demand. C. Both Panels A and B show an increase in demand. D. Panel A shows a change in demand and Panel B shows a change in quantity demanded.