Which of the following does not explain why the command systems of the Soviet Union and Eastern Europe failed?
A. The failure to use money for most exchanges.
B. Coordination problems.
C. Prices and profits did not fluctuate to reflect wants for a different allocation of resources.
D. Incentive problems.
Answer: A
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Suppose that you have returned from your fishing expedition with 20,000 fish. The market price is $3 per fish. Your average fixed cost was $1 and your total variable cost was $5,000 . If the price jumps to $3.50 before you sell your first fish, how much extra profit, if any, do you earn?
a. $10,000 b. $25,000 c. $30,000 d. $45,000 e. $70,000
The law of demand states that:
A. consumers will buy more of a product at high prices than at low prices. B. price and quantity demanded are directly related. C. price and quantity demanded are inversely related. D. the larger the number of buyers in a market, the lower the product price will be.
Which of the following is not a social insurance program?
A. TANF (Temporary Assistance for Needy Families). B. Medicaid. C. Supplemental Security Income. D. Unemployment compensation.
The XYZ Co is hiring salespersons. They will be paid a very attractive hourly rate that is independent of how much they sell. Describe an adverse selection that would take place. Describe a moral hazard that would take place
What will be an ideal response?