Which of the following statements is not true for a command economy?
A. The government decides what is produced.
B. The amount of a good supplied always equals the amount of the good demanded.
C. Consumers have some choices concerning what they buy.
D. The state decides how to distribute what is produced.
Answer: B
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The process by which individuals limit their productive efforts to a particular activity instead of trying to produce directly everything that they need is known as
a. specialization. b. using absolute advantage. c. using exchange. d. scarcity.
The voting members of the Open Market Committee are
a. the 7 Governors of the Federal Reserve System. b. the 12 presidents of the Federal Reserve Banks. c. the 7 Governors and the Chairman of the Council of Economic Advisors. d. the 7 Governors and 5 of the presidents of the 12 regional Federal Reserve Banks.
Which of the following is true for a monopolist but not for a firm in perfect competition?
A. The marginal revenue curve is downward-sloping. B. Marginal revenue equals price. C. Economic profits are zero in the long-run. D. The marginal revenue curve lies above the demand curve.
Which of the following are complementary goods?
A) sport utility vehicles and gasoline B) butter and margarine C) white wine and red wine D) trucks and sedans