The market mechanism
A. Works because prices serve as a means of communication between consumers and producers.
B. Works through central planning by government.
C. Eliminates market failures created by government.
D. Is not a very efficient means of communicating consumer demand to the producers of goods and services.
Answer: A
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The spot exchange market is for ________ delivery, whereas a forward contract permits a firm to buy or sell currency for ________ delivery
A) future; immediate B) local; distant C) immediate; future D) long-term; short-term
Congress intended that
a. the entire FICA tax be paid by workers. b. the entire FICA tax be paid by firms. c. one-quarter of the FICA tax be paid by workers, and three-quarters be paid by firms. d. half the FICA tax be paid by workers, and half be paid by firms.
A purely self-interested diner is more likely to tip:
A. whenever he can afford to. B. always, to assure good service. C. only when dining in a restaurant at which he often eats. D. only when dining in a very up-scale restaurant.
If the marginal cost were $21, output would be
A. 1.
B. 2.
C. 3.
D. 4.