Proprietorships, partnerships, and corporations are the primary forms of
A) industries.
B) business organization.
C) principal-agent relationships.
D) command-incentive relationships.
B
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Explain why cable television is not a pure private good
What will be an ideal response?
A perfectly competitive industry achieves allocative efficiency in the long run. What does allocative efficiency mean?
A) Firms use an input combination that minimizes cost and maximizes output. B) Each firm produces up to the point where all scale economies are exhausted. C) Each firm produces up to the point where the price of the good equals the marginal cost of producing the last unit. D) Production occurs at the lowest average total cost.
Expansionary fiscal policy can cause a rise in real GDP in combination with
A. an increase in the price level. B. a decrease in the price level. C. no change in the price level. D. a decrease in the price level if the aggregate supply curve is upward sloping.
Each of these is a basic characteristic of a capitalist economy, except
A. the institution of private property. B. central planning. C. laissez-faire. D. individuals acting in their own self-interest.