In a market economy, the decisions about what to produce and how much of each good or service to produce are made by
A. government officials.
B. economic planners.
C. central bankers.
D. consumers and producers.
Answer: D
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Psychological factors that may influence the saving rate are ________ and ________.
A. capital gains; the real interest rate B. the desire to leave a bequest; capital gains C. self-control problems; the demonstration effect D. the real interest rate; the demonstration effect
With regard to the characteristics of production indifference curves, which of the following statements is/are NOT true? a. Higher curves correspond to larger outputs
b. An indifference curve will generally have a negative slope. c. An indifference curve is typically assumed to curve inward toward the origin near its middle. d. All of the above are true for production indifference curves, but not for isoquants. e. b and c
High-wage workers are
a. more likely than low-wage workers to supply more labor when the wage rate rises. b. about as likely as low-wage workers to supply more labor when the wage rate rises. c. less likely than low-wage workers to supply more labor when the wage rate rises. d. The available evidence does not indicate how high-wage workers and low-wage workers differ in responding to changes in the wage rate.
Countries that have a higher degree of economic freedom tend to
What will be an ideal response?