Which of the following is a benefit of the price system?
A) the existence of positive externalities
B) the production of public goods
C) Consumers have what they want since politicians and business managers decide what is to be produced.
D) the freedom of consumers to decide what they want to purchase
D
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Briefly explain how a change in the personal income tax rate affects aggregate demand
What will be an ideal response?
Andy spends $30 a week on movies and magazines. The price of a movie is $8, the price of a magazine is $2, and Andy sees 3 movies a week and buys 3 magazines
The price of a magazine increases to $4 and Andy's brother gives him $6 a week so that he can still see 3 movies a week and buy 3 magazines. In this situation, Andy will see ________ movies a week and buy ________ magazines. A) fewer than 3; fewer than 3 B) 3; 3 C) fewer than 3; more than 3 D) more than 3; fewer than 3
Which of the following provides the best explanation of why low-income countries generally remain poor?
a. Their institutional arrangements and policies often discourage productive activity and reduce the potential gains from specialization and exchange. b. They are oppressed by developed nations that benefit from the cheap goods available from countries with low wage rates. c. They are poorly endowed with natural resources, which are essential for long-term rapid growth. d. When the average income level is low, workers have little incentive to earn higher incomes.
The inactive partner has a limited liability for the business's debts
What will be an ideal response?