An economic system
a. must answer the three economic questions to the satisfaction of everyone in society
b. must not allow some members of society to gain an unfair advantage when answering the three economic questions
c. must choose pure capitalism to adequately answer the three economic questions
d. is a set of social institutions and mechanisms organized to answer the three economic questions
e. can address problems of scarcity only by embracing the social institution of private property
D
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Monopolist fears that central banks would unfairly compete with all other profit-maximizing banks contributed to the demise of the First and Second Banks of the U.S
Indicate whether the statement is true or false
The official reserve account includes all of the following EXCEPT
A) gold. B) SDRs. C) foreign currencies. D) silver and other precious metals.
Which of the following statements best describes the price, output, and profit conditions of monopoly?
a. Price will equal marginal cost at the profit-maximizing level of output and profits will be positive in the long run. b. Price will always equal average variable cost in the short-run and either profits or losses may result in the long run. c. In the long run, positive economic profit will be eliminated. d. None of these.
Suppose GDP is $5.0 trillion, resource extraction is $0.5 trillion, production is $1.5 trillion, and distribution is $1.0 trillion.
1. How big is GO? 2. How big is GO minus GDP?