The market mechanism:
A. Works through central planning by the government.
B. Eliminates market failures created by the government.
C. Uses prices as a means of communication between consumers and producers.
D. Is very inefficient since consumers cannot communicate directly with producers.
Ans: C. Uses prices as a means of communication between consumers and producers.
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The question "Should we produce houses using bricks or wood?" is an example of a ________ question
A) what B) how C) why D) for whom E) where
All other things staying the same, an increase in the amount of labor would cause the marginal productivity of capital to
A. remain the same. B. decrease. C. increase. D. increase at a decreasing rate and then remain constant.
"Unions in the United States have helped raise the incomes of union workers as compared to nonunion workers." Do you agree or disagree? Why?
What will be an ideal response?
Refer to the diagram. Line (2) reflects the long-run supply curve for:
A. a constant-cost industry.
B. a decreasing-cost industry.
C. an increasing-cost industry.
D. a technologically progressive industry.