Which of the following is true in a market economy?
a. Central planners determine answers to the basic economic questions.
b. Resources are used efficiently.
c. The distribution of wealth is equal.
d. Information for production and distribution decisions pass directly to buyers from the government.
b
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When the price level rises, the real interest rate ________ and the quantity of real GDP demanded ________
A) rises; increases B) rises; decreases C) falls; increases D) falls; decreases E) does not change; does not change
The growth rate of real GDP is best represented as
A) (Contribution from capital) + (Contribution from labor) + (Contribution from total factor productivity) B) (Contribution from capital + Contribution from labor) / (Contribution from total factor productivity) C) (Contribution from total factor productivity) / (Contribution from capital + Contribution from labor) D) (Contribution from capital) × (Contribution from labor) × (Contribution from total factor productivity)
Which of the following is NOT a characteristic of a perfectly competitive market?
A. Each firm in the market sells a somewhat different variant of the good. B. There are many sellers, each of which sells only a small fraction of the total quantity exchanged. C. Sellers can easily buy and sell the productive resources needed to enter the market. D. Buyers and sellers are well-informed.
As you move up an indifference curve, the absolute value of the slope
A. decreases. B. remains constant. C. increases. D. initially increases and then decreases.