Which statement best describes a capitalist economy?
a. The production and allocation of goods and services is determined primarily through government
b. The production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by government
c. The production of goods and services is determined primarily by government, but the allocation of goods and services is determined primarily by markets
d. The production and allocation of goods and services is determined primarily through markets
d. The production and allocation of goods and services is determined primarily through markets
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For a consumer not bound by the collateral constraint, a reduction in the price of the collateral leads to
A) nothing. B) an increase in current consumption and a decrease in future consumption. C) a decrease in current consumption and no change in future consumption. D) a decrease in current and future consumption.
A firm is currently producing1140 units of output according to the production function q = L4/3K1/2 and faces input prices equal to w = $20 and r = $80. In the short run, capital is fixed at 5 units. In the long run, the firm's costs are
A) lower because the firm substitutes towards more labor and away from capital. B) lower because the firm substitutes towards more capital and away from labor. C) higher because the firm substitutes towards more labor and away from capital. D) higher because the firm substitutes towards more capital and away from labor.
Export promotion is widely regarding by economists as a positive role for government policy makers to play because it is very effective at promoting economic growth
Indicate whether the statement is true or false
YearAntonio's Hourly wageConsumer Price Index2006$8.40201.62010$9.05218.1 Refer to Table 8.2. From 2006 to 2010, Antonio received a total of $0.65 in pay raises, and the CPI also increased as shown in the table. What was Antonio's real wage in 2006, if 2010 is used as the base year?
A. $9.09 B. $9.05 C. $8.37 D. $8.40