In which system are decisions made by thousands of people who have information about resources, production technology and consumer desires?
A. market system
B. centrally planned system
C. command system
D. socialist system
Answer: A
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Cooperation among people in an urban, industrialized society
A) becomes more difficult as transaction costs increase. B) is dependent upon people having a detailed, specific knowledge of the wants and abilities of others. C) is impossible once the number increases beyond a few thousand. D) requires coordination by central-planning committees. E) will not occur unless most people approve of the goals and values of others.
If the Fed decides to use an open market operation to reduce the money supply by $1 million, and if the money multiplier is 10, then what total amount of Treasury securities must the Fed initially sell?
A. $10,000,000. B. $1,000,000. C. $100,000. D. $10,000.
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In Exhibit 3-7, if price happened to currently be $25 in this market, a _______ would result, causing a _______ in price.
A. shortage; increase B. shortage; decrease C. surplus; increase D. surplus; decrease
A monopoly can be formed by a bandwagon effect. Which of the following products would most closely match the bandwagon effect?
A) The Atlanta Braves baseball club B) The Dell Computer C) The Apple Watch D) The Chevrolet Corvette