One advantage market economies have over centrally-planned economies is that market economies
a. provide an equal distribution of goods and services to households.
b. establish a significant role for government in the allocation of resources.
c. solve the problem of scarcity.
d. are more efficient.
d
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Economist C says all of the following: Expansionary fiscal policy is needed to raise aggregate demand and remove the economy from a recessionary gap. The choice of fiscal policy measures is between ________________ government spending and a _______________ in taxes. Since I am in favor of bigger government, I choose a(n) _________________ in _________________
A) less; decrease; increase; government spending B) more; decrease; increase; government spending C) less; rise; decrease; government spending D) less; reduction; increase; taxes E) b or d
What would happen if you decreased the price to $2 and decreased the quantity supplied to 4,000 pounds?
a. You would create a shortage.
b. You would maintain the same surplus.
c. You would reach equilibrium.
d. You would reduce the surplus.
Which of the following advertising blurbs conveys the most helpful information?
a. “Buy a Blue Note automobile and add some jazz to your life.” b. “Our store hours have expanded till 10:00 pm!” c. “Jenkins Electronics offers the best HD TVs available.” d. “When you wear Sapphire cosmetics, you’ll look like a million.”
In the long run if the price is below average total cost, the firm will
A. go out of business. B. stay in business. C. temporarily shut down. D. None of the choices are correct.