In a market system, the what, how and for whom questions in economics are determined by
A) those who are not in the market.
B) buyers and sellers together.
C) the central authority.
D) no one.
B
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Economists often examine GNP to estimate changes in the well being of people. If one only studied GNP, which of the following would lead one to overestimate the true increases in peoples' well being?
a. Decreasing average hours of work b. Increasing life expectancy c. Decreasing levels of pollution d. Decreasing amounts of production in the home e. Increases in product quality
Economic profit equals gross earnings minus the firm's direct costs
a. True b. False Indicate whether the statement is true or false
The rate of production that maximizes the positive difference between total revenues and total costs is the
A) profit-maximizing rate of production. B) rate of production at which marginal revenue equals marginal product. C) rate of production at which marginal revenue equals average revenue. D) rate of production at which average revenue equals average total cost.
Which of the following is likely to increase measured GDP?
A) A greater number of women decide to stay at home and provide day care for their children under age 5. B) Marijuana becomes legal to grow and sell. C) Tax rates increase and more people attempt to underreport their income for tax purposes. D) More people decide to do their own lawn maintenance and give up using a professional service.