In a capitalistic economy:
a. The government owns the means of production
b. Markets can never be competitive
c. Consumers can never be sovereign
d. There is a reliance on the market system
d. There is a reliance on the market system
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Which of the following is NOT included in M1 or M2?
A) credit card balances B) checking account balances C) currency in circulation outside of commercial banks D) traveler's checks
Refer to Figure 2-4. A movement from X to Y
A) is the result of advancements in plastic production technology only, with no change in food production technology. B) could be due to a change in consumers' tastes and preferences. C) is the result of advancements in food production technology only, with no change in the technology for plastic production. D) could occur because of an influx of immigrant labor.
Which term refers to a legally established minimum price that firms may charge?
A) a price ceiling B) a subsidy C) a price floor D) a tariff
Related to the Economics in Practice on page 26: How did the introduction of the microwave oven in 1960 affect the market for frozen food?
A. It increased the financial cost of alternative methods of food preparation, such as conventional ovens. B. It encouraged people to leave the work force by making cooking easier and less time-consuming. C. It reduced the opportunity cost of eating frozen food by decreasing the amount of time required to prepare frozen meals. D. It made frozen foods more appealing by increasing the variety of meals that could be frozen and reheated.