What type of economic system is the United States economy based on?
a. cause and effect
b. centralized
c. market
d. production
Ans: c. market
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Techniques for estimating demand curves using direct observations from the marketplace are part of a family of statistical techniques referred to as:
a. legal studies. b. Econometrics. c. policy analysis. d. Economic expansion.
National saving minus investment equals the current account
Indicate whether the statement is true or false
Economists argue that individuals should continue to consume until total benefit equals total cost.
Answer the following statement true (T) or false (F)
Ten individuals have $100 and identical preferences for picnics, p, and kayak trips, k, where U(p, k) = k0.5p0.5. The price of picnics is $5 and the price per kayak trip is $ 10. What is the shortage/surplus in the market when the supply of picnics totals 120?
A) There is a surplus of 20. B) There is a shortage of 20. C) The market is in equilibrium. Therefore, there is no surplus/shortage. D) There is not enough information to answer this question.