Market organization
What will be an ideal response?
a method of organization in which private parties make their own plans and decisions with the guidance of market prices
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Voters have an incentive to become informed about political issues because the individual's vote is likely to affect the outcome
a. True b. False
For firms that sell one product in a perfectly competitive market, average revenue will:
A. increase if marginal revenue is greater than it. B. decrease if marginal revenue is greater than it. C. always be the same as marginal revenue. D. always be greater than average total cost.
Which statement best describes the increase in working capital in the United States from the early 1950s until the 2000s?
a. The average U.S. worker in the late 2000s was working with physical capital worth almost twice as much as that of the average worker of the early 1950s. b. The average U.S. worker in the late 2000s was working with physical capital worth almost four times as much as that of the average worker of the early 1950s. c. The average U.S. worker in the late 2000s was working with physical capital worth almost five times as much as that of the average worker of the early 1950s. d. The average U.S. worker in the late 2000s was working with physical capital worth almost three times as much as that of the average worker of the early 1950s.
Which of the following is NOT consistent with the Permanent Income Hypothesis?
A. The theory would predict that people's consumption would be greater than their income until their mid to late 20s B. A person who won the lottery would spend only a small part of their winnings in the first year C. Consumption is smaller than income when people reach old age D. People gear their consumption to their expected earnings more than to their current income