How are the fundamental economic decisions determined in North Korea?
A) The United Nations decides because North Korea is a developing economy.
B) These decisions are made by the country's elders who have had much experience in answering these questions.
C) Individuals, firms, and the government interact in a market to make these economic decisions.
D) The government decides because North Korea is a centrally planned economy.
D
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Explain how selling costs influence a firm's cost curves and its average total cost
What will be an ideal response?
In the above figure for a monopolistically competitive firm, the total cost at the profit-maximizing point is
A) $480. B) $400. C) $540. D) $880.
Which statement is true?
A. M1 is money, but not M2. B. M2 is money, but not M1. C. Both M1 and M2 are money. D. Neither M1 nor M2 is money.
Which of the following might be a way that an automobile driver's pollution costs could be internalized?
A) The driver could purchase abatement equipment for her car. B) The state could eliminate the gas tax. C) The state could pay a gas subsidy for everyone who drives. D) The state could allow her to drive in the HOV lane.