How are most fundamental economic decisions now determined in China?
A) The government decides because China is a centrally planned economy.
B) Individuals, firms, and the government interact in a market to make these economic decisions.
C) The United Nations decides because China is a developing economy.
D) These decisions are made by the country's elders who have had much experience in answering these questions.
B
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University of Colorado reserves 5,000 free tickets to each home football game for students. Students must stand in line to receive their ticket. Football tickets are allocated through which method?
A) market price B) sharing equally C) personal characteristics D) first-come, first-served E) force
Which of the following is most risky at a time of fluctuating interest rates?
A) Commercial paper B) U.S. Treasury bill C) Corporate bond D) Large negotiable bank CD
Exclusion of which of the following tends to understate the true level of unemployment in the economy?
a. Children. b. Retired persons. c. Students. d. People who do not want to work. e. Discouraged workers.
A negative externality occurs when
A) there is rent-seeking. B) benefits are imposed on individuals that are not part of a transactions. C) there is creative destruction. D) costs are imposed on individuals that are not part of a transaction.