Socialism is correctly described by which of the following statements?
A. Central planning is never used to answer the basic economic questions.
B. Markets are used exclusively to answer the basic economic questions.
C. Tradition is used exclusively to answer the basic economic questions.
D. Government ownership of many resources and centralized decision-making answers the basic economic questions.
Answer: D
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A $20 price tag on a sweater in a department store is an example of money serving as a
A) medium of exchange. B) unit of accounting. C) store of value. D) standard of deferred value.
Perfectly competitive firms ____ earn zero economic profit in long-run equilibrium because ____.
A. always; firms in perfectly competitive industries always maximize output and so flood the market until the equilibrium price of output is driven to zero B. sometimes; the demand curve for an individual perfectly competitive firm may or may not cross the company’s long-run average total cost curve at its lowest point C. always; firms enter whenever their economic profit is positive and exit whenever it’s negative, so in long-run equilibrium economic profit must always be zero D. never; no firm would be willing to produce if it received zero economic profit
Suppose your economics professor has an extra copy of textbook that he or she would like to give to a student in the class. Which of the following schemes is the most likely to result in an efficient outcome?
A. Auctioning off the textbook to the highest bidder. B. Letting students take turns using the textbook. C. Randomly selecting one student to receive the textbook. D. Giving the textbook to the student who has the lowest midterm score.
According to the following graphs, what is Y1?
The price of Y is $15 per unit.
A. 20 B. 12 C. 25 D. 15 E. none of the above