Which of the following is a strength of a command-based economic system?
a. It is possible for goods to be allocated based on need rather than based on willingness and ability to pay.
b. Since price is freely set based on supply and demand, there are few shortages or surpluses.
c. Consumers can transmit their preference for product quality and variety by way of their "dollar votes" cast in the marketplace.
d. Producers have strong incentives to innovate because successful innovators are rewarded with higher profit.
a
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Positive economic principles are those that:
A. are influenced by political ideology. B. are always correct. C. predict how people will behave. D. indicate how people should behave.
Upon graduation, you are offered three jobs
Company Salary Bonus Probability of Receiving Bonus Samsa Exterminators 100,000 20,000 .90 Gradgrind Tech 100,000 30,000 .70 Goblin Fruits 115,000 -------- ------- Rank the three job offers in terms of expected income, from the highest to the lowest. A) Samsa Exterminators, Gradgrind Tech, Goblin Fruits B) Samsa Exterminators, Goblin Fruits, Gradgrind Tech C) Gradgrind Tech, Samsa Exterminators, Goblin Fruits D) Gradgrind Tech, Goblin Fruits, Samsa Exterminators E) Goblin Fruits, Samsa Exterminators, Gradgrind Tech
The goal of programs such as government-subsidized housing, food stamps, and Medicaid are to:
A. spur economic growth. B. reduce the time people spend in transient poverty. C. redistribute wealth from the rich to the poor. D. None of these is true.
Some argue that U.S. workers cannot compete with cheap labor from many developing nations. This
A. is true and it is has been found that tariffs in these cases can save thousands of jobs and benefit the economy. B. is true and is a justification for tariffs to protect domestic jobs. C. is true but the benefits of free trade are still such that tariffs should not be placed on these industries. D. is not true, as evidenced by the fact that the United States carries on a lot of trade with countries that have lower wages.