Under laissez-faire, output selection is determined by
A. consumer preferences.
B. production costs.
C. firms’ desires to make profits.
D. All of the responses are correct.
Answer: D
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For quasi-experiments,
A) there is a particularly important potential threat to internal validity, namely whether the "as if" randomization in fact can be treated reliably as true randomization. B) there are the same threats to internal validity as for true randomized controlled experiments, without modifications. C) there is little threat to external validity, since the populations are typically already different. D) OLS estimation should not be used.
In a world where people would have no prior information about where they are in an income distribution, given the choice, Rawls argues that they would prefer
a. an income distribution that is relatively equal b. that everyone has the same work opportunities and then let incomes be what the market generates c. to rely on their abilities so accept high levels of income inequality d. that private property be transformed to government property to safeguard their incomes e. less economic assistance to the poor because it distorts the price system
Which of the following could trigger supply-side inflation?
a. a decrease in the wage rate for all workers b. an increase in raw materials' prices c. an increase in productivity of capital d. an increase in the labor force
If a market basket was defined in 2014 and it cost $10,000 to purchase the items in that basket in 2014, while it cost $11,000 to purchase those identical goods in 2015, then the price index for 2015 is
A. (11000/10000)*100=110. B. 100. C. (10000/11000)*100=90.9. D. unknown given this data.