If an economy's factors of production were owned by the government sector and the coordinating activity was done by a government planning board, the economy would be called:
A) capitalism.
B) market capitalism.
C) command socialism.
D) mixed capitalism.
Ans: C) command socialism.
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Senior citizen and student discounts on tickets at movies theaters are examples of
a. First-degree price discrimination. b. Second-degree price discrimination. c. Third-degree price discrimination. d. A two-part tariff.
An economy in which government bureaucracy decides how much of a good to produce, how to produce the good, and who gets the good is known as a
A) centrally planned economy. B) market economy. C) mixed economy. D) laissez-faire economy.
Assume that coffee and tea are substitutes. Given a downward sloping demand curve for tea, an increase in the price of tea will cause
A) an increase in the demand for coffee. B) a decrease in the demand for coffee. C) a leftward shift of the demand curve for tea. D) a leftward shift in the demand for coffee.
The law of diminishing marginal utility states that
a. total utility falls as more of a good is consumed, other things constant b. total utility falls as marginal utility falls, other things constant c. marginal utility falls as total utility increases, other things constant d. marginal utility falls as more of a good is consumed, other things constant e. marginal utility falls as less of a good is consumed, other things constant