In a free market, economic activity is coordinated by
A. central planners.
B. prices.
C. costs.
D. majority rule.
Answer: B
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The Earned Income Tax Credit (EITC)
A. provides more income to those people on welfare. B. is a tax on low income workers. C. provides additional tax credits to low income workers. D. is a tax break for the wealthiest Americans.
In the balance of payments account, the balance on current account always equals the balance on
a. capital account b. U.S. assets abroad account c. merchandise exports account d. income receipts on investments account e. unilateral transfers account
Your neighbors have offered to pay you to look after their dog while they are on vacation. It will take you one hour per day to feed, walk, and care for the dog, which you can do either before or after you go to work. Your regular job pays $10 per hour, and you can work up to eight hours per day. The smallest amount of money you would accept to look after your neighbor's dog each day is equal to:
A. $15, because overtime wages are generally 1.5 times your regular wage when you work more than eight hours a day. B. zero, because your regular job is not available for more than eight hours per day. C. $10, because that is your opportunity cost of one hour of work. D. the value you place on one hour of leisure.
Refer to the above table. How many units of resource Y would the firm employ at a price of $50 per unit of Y?
A. 2
B. 3
C. 4
D. 5