What is a major disadvantage of a centrally planned economy?
(A) Its military forces are too weak to be effective.
(B) It offers too many choices for consumers.
(C) It cannot meet consumers' needs and wants.
(D) It has no control over which goods and services are provided.
Ans: (C) It cannot meet consumers' needs and wants.
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A call option is a contract
A. that gives the owner the right, but not the obligation, to buy shares of a stock at a specified price within the time limits of the contract. B. that gives the owner the right, but not the obligation, to sell shares of a stock at a specified price within the time limits of the contract. C. in which the seller agrees to provide a particular good to the buyer on a specified future date at an agreed-upon price. D. that gives the owner the right, but not the obligation, to buy or sell shares of a stock at a specified price within the time limits of the contract.
If new firms enter a cartel market, the probability that the cartel will survive ________ if the cartel ________.
A) increases; includes or excludes the new firms from the agreement B) increases; excludes the new firms from the agreement, but not if the cartel includes the new firms C) decreases; excludes the new firms from the agreement, but not if the cartel includes the new firms D) decreases; includes or excludes the new firms from the agreement
A business incurs the following costs per unit: Labor $125/unit; Materials $45/unit and rent $250,000/month. If the firm produces 1,000,000 units a month, the total costs equal
a. $125,250,000 b. $170,250,000 c. $125,050,000 d. $170,050,000
Productive inefficiency could arise from
a. a waste of available labor b. a lack of resources c. an improvement in technology d. a movement along the production possibilities frontier e. too many goods being produced by the country or firm