The five most important variables that determine the level of consumption are
a. disposable income, wealth, expected future income, price level, and interest rate
b. wealth, savings account balances, checking account balances, stock portfolio balances, and bond portfolio balances
c. government purchases, interest rates, income, taxes, and transfers
d. government purchases, saving account balances, wealth, interest rates, portfolio balances
a. disposable income, wealth, expected future income, price level, and interest rate
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How are the fundamental economic decisions determined in Cuba?
A) The United Nations decides because Cuba is a developing economy. B) These decisions are made by the country's elders who have had much experience in answering these questions. C) The government decides because Cuba is a centrally planned economy. D) Individuals, firms, and the government interact in a market to make these economic decisions.
Is a benevolent command economy likely to achieve greater efficiency than a purely competitive market system? Explain.
What will be an ideal response?
Because resources are limited:
A. only the very wealthy can get everything they want. B. firms will be forced out of business. C. the availability of goods will be limited but the availability of services will not. D. people must make choices.
In long-run equilibrium for a perfectly competitive industry, price equals
A. long-run average cost. B. short-run average cost. C. short-run marginal cost. D. All of the above are correct.