A mixed economy
A. Relies on the use of central planning by private firms rather than the government.
B. Is one that allows trade with other countries.
C. Is justified by the superiority of laissez faire over government intervention.
D. Utilizes both market and nonmarket signals to allocate goods and services.
Answer: D
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A market with the characteristics of many firms selling an identical product, many buyers, and no restrictions on entry or exit to the market is
A) a monopoly market. B) an oligopolistic market. C) a perfectly competitive market. D) a monopolistically competitive market.
All of the following are true about foreign direct investment (FDI) and portfolio investment EXCEPT
A) increases in the flow of portfolio investments increase the likelihood of financial crisis. B) both portfolio investments and FDI are the same in that they both give their holders a claim on the future output of the foreign economy. C) FDI is relatively illiquid compared to portfolio investment. D) portfolio investments have been on the decline in recent years (or decades). E) FDI investors must be willing to go through many ups and downs in order to benefit from their long-term investments.
Land rent results from
a. differences in the productivity of land b. equality in the marginal physical product of different acres of land c. landlords demanding a rent higher than the price of land use d. differences in land distance from the marketplace e. the difference between differential and location rents
Which of the following would be classified as an externality?
a. Smoke from a chimney causes discolored and peeling paint on other houses in the neighborhood. b. Noise from an unmuffled car wakes a sleeping person. c. A neighbor cleans up a yard and repaints a house. d. All of the above are externalities.