In a ________ economy, the behavior of buyers and sellers determines what gets produced, how it is produced, and who gets it.
A. laissez-faire
B. socialist
C. utopian
D. command
Answer: A
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Jake is a corn farmer in Nebraska. He rents his land on a long-term lease for $250,000 a year. He pays his farm hands $128,000 a year
Is his rent a fixed cost or a variable cost? Are the wages he pays his workers a fixed cost or a variable cost? Briefly explain your answers.
Which of the following would lead to a short-run market surplus for tomatoes?
A) The price of tomatoes increases. B) A new government study shows that tomatoes have a greater risk of contamination from salmonella. C) An increase in the price of potatoes. D) A decrease in the number of tomato growers.
What happens to labor supply in the pear-picking market when the wage paid to apple pickers increases?
a. The labor supply will stay unchanged until the wages paid to pear pickers change. b. The labor supply will decrease. c. The labor supply will increase. d. The labor supply may fall or rise, depending on the price of pears.
If the reserve requirement is 10 percent, and banks keep no excess reserves, an increase in an initial $300 into the banking system will cause an increase in total money of:
A. $3,000. B. $30,000. C. $300. D. $30.