"For whom is a given mix of goods and services to be produced? How, in other words, are the society's outputs to be distributed among its members?" In a market economy, this question is resolved primarily in the:
A. Public sector through the mechanism of central planning
B. Business sector through the mechanism of advertising
C. Private sector through the earning and spending of income
D. Money market through borrowing and saving by households and businesses
Answer: C
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If the interest rate is 8 percent, the present value of $10,000 to be received 10 years from today is about
A) $21,589. B) $9,259. C) $4,632. D) $10,800.
A subsidy to carrot farmers will
A) increase the quantity of carrots demanded. B) decrease the quantity of carrots supplied. C) increase the supply of carrots. D) leave both the supply and demand of carrots unchanged.
Monetarists believe that the private sector of our economy is inherently ______.
Fill in the blank(s) with the appropriate word(s).
From the viewpoint of the individual investor, are stocks or bonds riskier? Explain