The problem of determining for whom to produce exists because:
A) government regulations prevent firms from producing the kinds of goods that consumers want.
B) a decision that one person or group will receive a good or service usually means that another person or group will not.
C) taxes on firms make it more costly for them to produce all the goods that people want.
D) taxes on consumers make it more difficult for them to buy all the goods they want.
Ans: B) a decision that one person or group will receive a good or service usually means that another person or group will not.
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If the marginal cost curve is below the average variable cost curve
A. both average total cost and average variable cost are decreasing. B. average variable cost is less than average fixed cost. C. both average total cost and average variable cost are increasing. D. average total cost is increasing but average variable cost is decreasing.
In the Keynesian model, portfolio decisions of individuals determine the
A) inflation rate. B) money supply. C) interest rate. D) GDP.
A monopoly firm
A. has a short-run supply curve that slopes upward. B. is a price taker. C. does not have a supply curve. D. is at the mercy of the market-determined price.
Rising prices help control the process of resource depletion by
a. discouraging consumption and waste. b. stimulating more efficient use of the depletable resource. c. encouraging resource-saving innovation. d. doing all of the above.