One role government can play in addressing market failure is to:
A. enforce the rules of exchange.
B. increase economic uncertainty.
C. promote imperfect competition.
D. facilitate decision making for private goods.
Answer: A
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Firms organize production by using a mixture of two systems: (1 ) command systems and (2 ) incentive systems
Indicate whether the statement is true or false
Which of the following best describes trends in unionization and immigration in the 1920s?
a. Immigration was restricted and unions decreased b. Immigration was encouraged and unions increased c. Immigration was encouraged while the number of union members decreased d. Immigration was discouraged while the number of union members increased
When the economy slows down:
A. firms contract their operations. B. demand for workers decreases. C. GDP growth is slowing or negative. D. All of these are true.
Smith and Jones comprise a two-person economy. Their hourly rates of production are shown below. CalculatorsPer HourComputersPer HourSmith10010Jones1206Suppose Smith and Jones begin by producing 100 calculators per hour; as Smith and Jones choose to efficiently produce fewer computers and more calculators, ________ should devote more time to calculators because his ________.
A. Smith; opportunity costs are lower B. Jones; opportunity costs are lower C. Smith; absolute advantage is larger D. Jones; absolute advantage is smaller