Which of the following is concerned with the distribution part of resource allocation?
A. An economy decides to produce equal quantities wheat, rice, and clothes.
B. An economy decides to use 25 percent of the available capital for producing clothes.
C. An economy decides to ration 40 percent of its output to low income groups.
D. An economy decides to use more labor for producing wheat and rice.
Answer: C
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Lizzie's budget line is shown in the figure above. If Lizzie's income is $20, which of the following formulas represents her budget equation?
A) QC = 20 + QM B) QC = 20 - QM C) QC = -20 + 2 QM D) QC = 20 - 2QM
In a system of impersonal exchange,
a. bureaucratic ties on the production side are critical b. the economy benefits from specialization and modern technology c. inside connections on the consumption side are necessary d. successful institutional evolution makes no difference e. there is very little division of labor
Economic profit equals gross earnings minus the firm's direct costs
a. True b. False Indicate whether the statement is true or false
Which of the following countries is among the top-five trading partners of the United States?
a. England b. China c. Russia d. India