A system in which the factors of production are owned by private citizens
a. command economy
b. traditional economy
c. capitalism
d. free enterprise economy
Ans: c. capitalism
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An economy in which output has decreased and prices have increased would suggest that there has been a:
A. negative demand side shock. B. negative supply side shock. C. positive demand side shock. D. positive supply side shock.
Inflation is an overall:
A. rise in prices in the economy. B. decline in prices in the economy. C. decline in prices in the economy, excluding those with historically volatile price changes. D. rise in prices in the economy, excluding those with historically volatile price changes.
Figure 5.4 shows a firm's marginal cost, average total cost, and average variable cost curves. At Q = 100, the total variable cost is:
A. $2,800. B. $4,000. C. $4,500. D. $6,300.
A monopolistically competitive firm influences market price because of product differentiation.
Answer the following statement true (T) or false (F)