In an ideal competitive market economy
a. resources are allocated according to a person's needs.
b. resources are allocated according to ability to pay.
c. social and individual needs are met by the market.
d. All of the above are true.
b
You might also like to view...
Which of the following is a factor of production that generally is fixed in the short run?
A) a factory building B) water C) raw materials D) labor
Capital outflows occur if:
A) domestic interest rates are higher than foreign interest rates. B) domestic interest rates are lower than foreign interest rates. C) domestic and foreign interest rates are the same. D) none of the above.
Suppose that you can hire your mechanic for up to six hours. The total benefit and total cost functions are B(H) = 300H - 20H2 and C(H) = 55H + 60H2. The corresponding formulas for marginal benefit and marginal cost are MB(H) = 300 - 40H and MC(H) = 55 + 120H. For how many hours should you hire your mechanic?
A. 1.53 hours B. 0.65 hours C. 6 hours D. 0 hours
A firm's employment of labor outside the country in which the firm is located
A) is outsourcing. B) shifts the supply of labor in the original country. C) is the marginal revenue product. D) shifts the supply of labor in the other country.