Which of the following best describes a command economy?
A) An economy that is characterized by barter trade of goods and services
B) An economy where strong controls are imposed by the ruling authority
C) An economy in which resources are allocated through the price mechanism.
D) An economy in which there are a few privately owned firms
B
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Which of the following correctly explains why sellers in a perfectly competitive market are price takers?
a. There are few sellers, and so they have the power to take whatever price they want. b. There are many sellers, and so the market process generates an equilibrium price that cannot be influenced by any one seller. Thus they have no choice but to take the price generated by the market process. c. Sellers in a competitive market have the power to influence price by colluding with one another and using quotas to limit overall market output and thus raise price. d. Individual buyers in a competitive market have the power to influence price, and thus can impose prices and other conditions on powerless sellers.
When the Fed decreases the money supply, interest rates
a. rise. b. fall. c. are unaffected. d. rise and then fall. e. fall and then rise.
Show graphically the effect of technological advance on the price of music downloads. In a separate graph show what happens to the price of CDs as a secondary effect of the new download technology
Refer to the graph shown.
The poorest 50 percent of the families earn:
A. 19 percent of the income. B. 64 percent of the income. C. 6 percent of the income. D. 36 percent of the income.