Answer the following statement(s) true (T) or false (F)
1. In a planned economy, an individual's personal income dictates his or her spending choices.
2. Although the United States comes close to being a capitalist economy, it is considered a mixed economy because there is some government intervention.
3. Business managers do not need to be aware of the decisions of collective businesses outside their own industry.
4. The value of currency is based on an underlying commodity.
5. The price of a product or service is based entirely on its actual value.
1. False
2. True
3. False
4. True
5. False
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Technological change that makes it easier to produce in a "cleaner" fashion would cause
A) the marginal cost curve of pollution abatement to shift left, increasing the degree of air quality. B) the marginal cost curve of pollution abatement to shift right, increasing the degree of air quality. C) the marginal benefit curve of pollution abatement to shift right, increasing the degree of air quality. D) the marginal benefit curve of pollution abatement to shift left, increasing the degree of air quality.
When a borrower fails to pay back a loan according to the agreed-upon terms, it is called:
A. credit risk. B. opportunity cost. C. default. D. inflation.
In a fixed exchange rate system
A. market forces play a role in determining the fixed value of a currency. B. a central bank affects the value of a currency by changing its foreign exchange reserves. C. the International Monetary Fund determines exchange rates. D. market forces and the country's stock of gold determine its exchange rate.
When taxes and transfer payments are taken into account, the distribution of income in the United States:
A. Is unchanged B. Is less equally distributed C. Is more equally distributed D. Becomes more beneficial for the wealthy