The economic system that is generally considered to be the most efficient at answering the What to produce and the How to produce questions is the:
A. market economy.
B. command economy
C. soviet economy.
D. traditional economy.
Answer: A
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Refer to Monopoly Problem. The equation for this monopolist’s marginal revenue is
Consider a monopoly with constant marginal costs of $20. Consumers in the market for this monopoly’s product have demand of Q = 100 - 2P. a. MR = 100 - 2P b. MR = 100 - 4P c. MR = 50 - 0.5Q d. MR = 50 - Q
If the government drafts people into the armed forces rather than persuading them to volunteer
A) it conceals in part the cost to its citizens of obtaining military personnel. B) it employs a nondiscriminatory system because everyone drafted incurs the same cost and can be paid the same wage. C) it must pay higher wages since many people resent the draft. D) it reduces the cost to the nation as a whole of obtaining military personnel. E) it tends to obtain people with the lowest opportunity costs.
Suppose a perfectly competitive firm faces the following short-run cost and revenue conditions: ATC = $8.00; AVC = $5.00; MC = $8.00; MR = $9.00. The firm should
A) decrease output. B) increase output. C) increase price. D) continue to produce its current output.
Workers, rather than firms, bear most of the burden of the payroll tax
a. True b. False Indicate whether the statement is true or false