A major distinguishing feature between capitalist and socialist (or command) economies is that
a. under capitalism the average citizen is always wealthier than in socialist economies
b. decision making is typically decentralized in socialist economies and is centralized in capitalist economies
c. socialist countries all have red flags and capitalistic economies do not
d. resources are publicly owned in capitalist economies
e. decision making is typically decentralized under capitalism while it is centralized in command economies
E
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A monopolist has determined that at the current level of output the price elasticity of demand is -0.15. Which of the following statements is true?
A) The firm should cut output. B) This is typical for a monopolist; output should not be altered. C) The firm should increase output. D) None of the above is necessarily correct.
Suppose that equilibrium in the dollar-pound market occurs where 300 million pounds are demanded at a price of $1.65 per pound. If the current exchange rate is $1.80 per pound, there is will be a(n)
a. rightward movement along the supply of British pounds curve b. leftward movement along the supply of British pounds curve c. rightward shift of the supply of British pounds curve d. leftward shift of the supply of British pounds curve e. increase in the exchange rate
Ticket "scalping" is an example of
a. experimental economics. b. the limitation of the volume of transactions. c. the development of a black market. d. favoritism.
YearFootballs(in millions)P FootballsBooks(in millions)P BooksNominal GDPReal GDP2000 Base Yr55464949200165465454200276577765200347788462Assume the table has recorded the total output and prices of the only two goods produced. Looking at the changes in real GDP and nominal GDP from 2000 to 2001, we can conclude that because:
A. nominal GDP rose more than real GDP, both prices and output must have increased. B. real GDP rose more than nominal GDP, output must have increased more than prices. C. real and nominal GDP increased at the same rate, there was no change in output, only prices. D. real and nominal GDP increased at the same rate, there was no change in prices, only output.