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.
You might also like to view...
One of the major weaknesses of the original Keynesian approach to the business cycle was
A) the assumption that firms were perfectly competitive. B) the failure to explain why wages were rigid. C) the denial of the existence of the Pigou effect. D) the assumption that the demand for labor depended on the real wage.
If lenders think that a particular borrower might default, they will demand a:
A. higher interest rate to make it worth taking that risk. B. lower interest rate to make it worth taking that risk. C. higher interest rate to decrease the amount of risk incurred. D. lower interest rate to decrease the amount of risk incurred.
The graph above shows cost curves for a perfectly competitive firm. If market price is $2, how much profit will the firm earn?
A. -$600 B. $600 C. $400 D. zero
The supply curve for a monopolist:
a. is upward sloping b. is vertical c. is equal to the MC curve above AVC d. is equal to the MR curve above the AVC e. none of the above