The idea that in the market system, consumers ultimately decide which goods and services firms will produce is known as
A) socialism.
B) monopolistic competition.
C) consumer sovereignty.
D) institutional competition.
C
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The upward slope of the supply curve reflects the
A. principle of specialization in production. B. fact that price and quantity supplied are inversely related. C. law of increasing substitution. D. principle of diminishing marginal productivity
Suppose an American worker can make 20 pairs of shoes or grow 100 apples per day. On the other hand, a Canadian worker can produce 10 pairs of shoes or grow 20 apples per day. Canada has the ____________ opportunity cost of a pair of shoes than the United States, so: ____________.
A. higher; Canada should specialize in shoe production B. lower; Canada should specialize in apple production C. higher; Canada should specialize in apple production D. lower; Canada should specialize in shoe production
Positive externalities
a. result in a larger than efficient equilibrium quantity. b. result in smaller than efficient equilibrium quantity. c. result in an efficient equilibrium quantity. d. can be internalized with a corrective tax.
Briefly explain why the federal income tax is considered a progressive tax.
What will be an ideal response?