Describe the differences between capitalism and socialism
Capitalism is characterized by private ownership over the means of production (the factors of production are privately owned) and economic activity is coordinated through a system of markets and prices (consumers and firms in the market make economic choices). Socialism in characterized by public or collective ownership over the means of production and economic activity is coordinated by the government.
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If M = 2,000, P = 5, and Q = 1,000, the GDP
A. Is 1,000. B. 2,000. C. 5,000. D. 10,000.
Which of the following is a category of national income?
A) net interest B) rental income C) corporate profits D) all of the above
The figure above shows the demand and cost curves for a single-price monopoly. Which of the following statements is FALSE?
A) To maximize its profit, the firm will set marginal revenue equal to zero by producing 12.5 units. B) The firm will make an economic profit. C) The firm is a not a natural monopoly. D) The firm will set price where demand is elastic.
Negative marginal utility means that
a. total utility is also negative b. marginal utility increases as additional units are consumed c. the price of the product increases as additional units are consumed d. the total revenue spent on the product decreases as more of the product is purchased e. total utility decreases as additional units are consumed