In a market economy, goods are allocated to
a. all potential uses.
b. all citizens on an equal basis.
c. citizens with political power.
d. citizens with both the desire and the willingness to pay for the goods.
d
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When the CPI rises ________, the inflation rate is ________
A) rapidly; low B) rapidly; high C) steadily; zero D) slowly; high E) rapidly; either high, low, or zero depending on whether production of output is increasing, decreasing, or not changing.
Suppose market demand is p = 10 - Q. Firms have a fixed cost of five and no marginal cost. If firm A is the incumbent, can it deter the entry of its rival, firm B?
What will be an ideal response?
The marginal decision rule will be replaced with the net present value rule when:
a. costs and benefits occur at approximately the same time b. costs are incurred immediately c. benefits are incurred immediately d. the marginal decision rule is never replaced
If disposable income is $900 billion when the average propensity to consume is 0.8, it can be concluded that:
a. Consumption is $800 billion b. The marginal propensity to save is 0.1 c. The marginal propensity to consume is 0.9 d. Saving is $180 billion