Describe the differences between capitalism and socialism.
What will be an ideal response?
Capitalism is characterized by private ownership over the means of production (the factors of production are privately owned) and economic activity is coordinated through a system of markets and prices (consumers and firms in the market make economic choices). Socialism in characterized by public or collective ownership over the means of production and economic activity is coordinated by the government.
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The employment-to-population ratio equals
A) (labor force)/(working-age population) × 100. B) (number of people employed)/(labor force) × 100. C) (number of people with full-time jobs)/(labor force) × 100. D) (number of people employed)/(working-age population) × 100.
A cut in the payroll tax will tend to cause, other things the same, ________
A) a change in aggregate demand, with no effect on supply B) a change in both aggregate demand and supply C) a change in aggregate supply, with no effect on demand D) no change in either aggregate demand or supply
A firm that has merged with many other firms producing a variety of goods unrelated to each other
a. faces higher risks than if it specialized in one and focused on it b. increases its market share in the industry c. cannot maximize profit although it does maximize sales d. cannot survive in the long run e. is a conglomerate
Technological change was a major contributor to the productivity speed-up from 1995-2000
a. True b. False Indicate whether the statement is true or false