In a market economy, the distribution of output will be determined primarily by:
A. consumer needs and preferences.
B. the quantities and prices of the resources that households supply.
C. government regulations that provide a minimum income for all.
D. a social consensus as to which distribution of income is most equitable.
Answer: B
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The profit maximizing level of output for this farmer is
A. 6.
B. 9.
C. 12.
D. 3.
Hiring a more expensive celebrity endorser will always result in higher firm profits.
Answer the following statement true (T) or false (F)
A trade deficit occurs for a nation when it:
A. exports more than it imports. B. imports more than it exports. C. receives more foreign currency than it sends out in domestic currency. D. loans out U.S. dollars to foreign buyers of domestically produced goods.
Refer to the two diagrams for individual firms. Figure 1 pertains to:
A. an imperfectly competitive firm.
B. a purely competitive firm.
C. an oligopolist.
D. a pure monopolist.