An economy where private individuals guided by the invisible hand make decisions is known as a:
A. market economy.
B. centrally planned economy.
C. socialist economy.
D. barter economy.
A. market economy.
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Suppose a market produces 5,000 tons of wheat. At this quantity, the marginal cost exceeds the marginal benefit. This outcome could be the result of
A) a quantity regulation limiting the amount that can be produced. B) a monopoly. C) a subsidy. D) an external benefit. E) producing a public good.
Over the past 100 years, in the United States the average growth rate of ________ grew at a faster rate than ________
A) real GDP; nominal GDP B) the population; real GDP C) real GDP; the population D) inflation; real GDP
On an isoquant/isocost graph, the least cost input combination of producing a given output is
A) given by the tangency between the isoquant curve and the isocost line. B) any point on the isocost line. C) any point on the isoquant curve. D) one of the intercept values on the graph.
Economists usually have to make do with whatever data the world happens to give them
a. True b. False Indicate whether the statement is true or false