The decision about what goods and services will be produced in a market economy is made by
A) consumers and firms choosing which goods and services to buy or produce.
B) consumers dictating to firms what they need most.
C) workers deciding to produce only what the boss says must be produced.
D) producers deciding what society wants most.
E) lawmakers in the government voting on what will be produced.
A
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Fixing a payment schedule in an agreement:
a. allows the seller to easily access loanable funds. b. increases the uncertainty associated with the cost of production. c. allows the seller to charge a high price for his product. d. ensures the delivery of goods at a high price.
If a consumer purchases more of good B when his income rises, good B is an inferior good
a. True b. False Indicate whether the statement is true or false
A perfectly competitive firm breaks even at the level of output where
A. P = ATC. B. P = MC. C. P > ATC. D. P < ATC.
Although digital storage costs have declined sharply in the past few years, many universities and companies still have limited storage space for email messages and impose a fixed limit on the amount of file storage space per user
May we view this as a common property resource problem, and do the fixed limits resolve the problem? A) Yes, the storage space used by one person is not available to another person, and the storage limit is a type of quota that allocates the property rights to the storage space. B) Yes, the storage space used by one person is not available to another person, and the storage limit represents a form of single-person ownership that resolves the common property resource problem. C) No, one person's use of the storage space does not have an impact on other people, so this is not a common property resource problem. D) This is an example of a common property resource problem, but the fixed limits on storage space do not resolve the problem.