The government may not implement policies intended to redistribute income in which of the following economic systems?
A. Laissez-faire capitalism
B. Command system
C. Mixed economy
D. Market system
Answer: A
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The goals of rate regulation have included the prevention of
A) monopoly profits. B) oligopolistic pricing. C) marginal cost pricing. D) average cost pricing.
When demand is elastic,
A. the percentage change in price is greater than the percentage change in quantity demanded. B. price increases raise total revenue. C. the buyer is sensitive to changes in price. D. the elasticity coefficient is greater than zero, but less than one.
For a private good, the economy's marginal social benefit curve is the _______________ sum of the individual marginal benefit curves and for a public good, the economy's marginal social benefit curve is the ________________ sum of the individual marginal benefit curves.
a) horizontal; vertical b) horizontal and vertical; vertical and horizontal c) vertical; vertical d) vertical; horizontal
Figure 11-1
The Red Cross is virtually the only operator of blood banks in the United States. In Figure 11-1 are the demand and supply curves facing the Red Cross blood bank. If it were to operate like a profit-maximizing business, how many units of blood would it sell?
a.
OA
b.
OB
c.
OC
d.
OD