The U.S. has a mixed economy because
A. the government helps in answering the three basic questions of economics: what, how and for whom.
B. the laissez faire market system lacks government intervention.
C. all goods and services are provided privately.
D. the central planning body makes all market decisions.
A. the government helps in answering the three basic questions of economics: what, how and for whom.
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Another term to describe the normal rate of return on capital is the
A) fixed cost of capital. B) depreciation cost of capital. C) opportunity cost of capital. D) monopoly rent.
If the U.S. government decides to eliminate a budget surplus by reducing taxes, the most likely effect would be
A. falling prices. B. a reduction in the trade deficit. C. an increase in unemployment. D. upward pressure on prices.
Marginal ________ is the added revenue from producing and selling one more unit of output.
A. revenue B. cost C. income D. profit
A disadvantage of corporations over a proprietorship or partnership is in the
A) legal liability. B) ability to raise funds. C) taxation system. D) future of the firm when an owner dies.