Pencils are produced in the market economy
A) only because people need pencils.
B) only because pencil production is centrally planned, from the growing of the trees and mining of the graphite to the final stages of pencil assembly.
C) even though the final assemblers of pencils have no idea how to produce the paint, graphite, wood, rubber, and metal ferrules.
D) by government decree.
C
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The winner of a sealed-bid first-price auction is the participant who bid the ________ and pays the amount of the ________.
A) highest; second-highest bid B) highest; bid C) second-highest; bid D) second-highest; second-highest bid
Which of the following statements best illustrates the form of an economic theory?
A. If A, then B. B. If A, then B, when C, D, E, and F are also changing. C. A, B, and C all occurred at the same time. D. If A, then B, other things held constant.
A monopolistically competitive firm is producing at a short-run output level where average total cost is $10.00, marginal cost is $5.00, marginal revenue is $6.00, and price is $12.00. In the short run, the firm should:
A. make no change in the level of output. B. increase the level of output. C. decrease the level of output. D. increase product price.
One of the possible roles governments can play in sponsoring growth is to
A) close the nation to trade in order to protect its domestic producers. B) own more of the nation's resources in order to put them to use. C) limit the use of property rights in order to decrease the harm they create. D) make decisions for its citizens as to the most suitable job. E) provide tax incentives to encourage saving.