In order to maximize profits, firms organize their production using
A) only a command system.
B) only an incentive system.
C) a combination of command and incentive systems.
D) neither a command nor an incentive system.
C
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Fred spends all of his income on two goods: DVDs and downloaded music. If Fred's marginal utility per dollar from DVDs is greater than his marginal utility per dollar from downloaded music, Fred can ________ his total utility by buying ________
A) maximize; more DVDs and more downloaded music B) increase; more downloaded music and fewer DVDs C) increase; more DVDs and less downloaded music D) maximize; fewer DVDs and less downloaded music
If nominal money supply grows 3% and real money demand grows 8%, the inflation rate is
A) -5%. B) 8/3%. C) 5%. D) 11%.
By definition, a proprietorship is
A) owned by many shareholders. B) a large manufacturing concern. C) owned by a single individual. D) managed by a large group called the "board of directors."
When two goods are perfect complements, the indifference curves are right angles
a. True b. False Indicate whether the statement is true or false