Discuss the three basic types of economic systems
Three basic economic systems are the traditional, command, and market systems. The traditional system is based on decisions made according to custom, and the command system answers the three economic questions through some powerful central authority. In contrast, the market system uses the impersonal mechanism of the interaction of buyers and sellers through markets to answer the What, How, and For Whom questions.
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The demand for current consumption, as plotted against the interest rate, shifts to the right due to all of the following except
A) a decrease in current taxes. B) a increase in future taxes. C) an increase in current income. D) an increase in future income.
In determining the poverty level, the Census Bureau counts cash transfers, but not in-kind transfers, thereby understating the actual amount of antipoverty transfers made
a. True b. False
Public finance
A. is not like public economics. B. develops principles for understanding the economic role of government. C. only works for local and state governments. D. all of these answer options are correct.
When economies of scale are present, but are not sufficiently large to generate a natural monopoly, the expected market structure is:
A. monopoly. B. monopolistic competition. C. perfect competition. D. oligopoly.