In a pure capitalist economy, "what to produce" is determined by
A. a central planning board.
B. the price mechanism.
C. the issuing of government coupons used along with money to purchase goods.
D. None of these choices are true.
B. the price mechanism.
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Using rate-of-return analysis to determine who benefits and who does not benefit from the current structure of Social Security is
A. embraced by all. B. embraced not only by financial planners but also by most economists. C. rejected by those that view the program as social insurance rather than as an investment. D. rejected by everyone.
Bundling:
A. is the practice of selling a single product in bulk at a reduced per unit price. B. is the practice of selling several products together as a package. C. is the practice of selling the same good to different types of consumers at different prices. D. is the practice of selling different goods to different types of consumers at different prices.
Economists use the term "utility" to refer to the usefulness of a good or service, and so consequently aesthetic products like art, music, and vacations have no utility
Indicate whether the statement is true or false
Inoculation programs against certain diseases such as small pox, polio, and whooping cough create:
a. nonrival goods. b. external costs to society equal to the costs of the program. c. nonexcludable goods. d. public goods. e. positive externalities in consumption