All capitalist economies
A. can operate without government establishing a legal system.
B. create an equal distribution of income.
C. depend on central planning.
D. depend on the price mechanism.
D. depend on the price mechanism.
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Suppose you find $1000 in your attic and decide to deposit it all into your local bank, which must hold 10% as required reserves. The deposit expansion multiplier suggests that this $1,000 "injection" of new money can, in the theoretical limit,
A) increase the money supply by a little more than $1,000. B) increase the money supply by a little less than $1,000. C) increase the money supply by only $1,000. D) increase the money supply by $10,000.
A foreign bank receives a deposit of $10,000 from a U.S. citizen. As a result, there is a net capital outflow from the U.S., if ________
A) the bank buys a U.S.-made computer B) the bank buys a bond issued by a U.S. company C) the bank keeps the $10,000 in a vault D) all of the above E) none of the above
All of the following are true regarding the Economic Order Quantity model except which one?
A) It determines the cost-minimizing quantity managers should order to keep in inventory. B) It assumes demand is known with certainty. C) It accounts for seasonal changes in demand. D) It assumes demand is spread evenly over a time period.
A right-to-work law is
A) a federal law making the closed shop illegal. B) a federal law making the union shop illegal. C) a state law making the union shop illegal. D) a state law making the open shop illegal.