In a market capitalist economy:
A) markets are not competitive.
B) individual ownership and decision making are relied upon.
C) consumers have few choices.
D) the government owns the factors of production.
Ans: B) individual ownership and decision making are relied upon.
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If the poverty threshold is set at 60 percent of median income, and if median income were $20,000 . then people in poverty earn less than
a. $32,000 b. $20,000 c. $12,000 d. $6,000 e. $24,00
The way in which a country benefits from trade is that it can
a. obtain goods at lower opportunity cost than producing them itself. b. exploit economies of scale in production and lower the cost of goods it produces. c. obtain a wider range of goods than it can produce for itself. d. All of the above are benefits.
Which of the following is true?
a. The production possibilities curve indicates that it will be impossible to expand total output with the passage of time. b. As long as resources are scarce, output cannot be increased. c. The size of the economic pie is fixed, and therefore, if one individual has more income, others must have less. d. Over time, the output of goods and services can be increased through human ingenuity and discovery of better ways of doing things.
A consumption function with taxes lies above a consumption function without taxes
a. True b. False Indicate whether the statement is true or false