An economy in which a central authority draws up a plan that establishes what will be produced and when, sets production goals, and makes rules for distribution is a
A. free-market economy.
B. command economy.
C. laissez-faire economy.
D. public-goods economy.
Answer: B
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The labor demand and labor supply schedules are given in the table above. If a minimum wage of $11 per hour is imposed,
A) a surplus of 300 workers occurs. B) there is no shortage or surplus of workers. C) 900 workers are employed. D) Both answers B and C are correct. E) Both answers A and C are correct.
A rightward shift of the demand curve will lead to a(n)
A) increase in equilibrium price. B) excess demand at the old equilibrium price. C) increase in quantity supplied. D) All of the above.
One benefit to private sector production of a collective consumption good is _____
a. it overcomes the free riding problem b. private producers can often bundle the good with something else people value c. profits from private companies can be taxed d. provides information valuable in allocating future resources
If an employment situation is characterized by adverse selection, there is an excess supply of underqualified applicants for each job
a. True b. False