In a competitive market economy, a resource in short supply will be allocated
a. so that each firm gets enough to keep producing some portion of its output.
b. according to how much each firm purchased before the shortage.
c. to those firms that can make the most profitable use of it.
d. by government fiat.
c
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Personal income does not include
a. transfer payments. b. capital consumption allowance. c. dividends. d. interest income.
Because there is a finite supply of a nonrenewable resource,:
a. it has inadequate substitutes. b. any use of that resource today will leave less available for tomorrow. c. such resources are replenished faster than they are consumed. d. the government subsidizes the extraction of such resources. e. any use of that resource today means the value of the resource will fall in the future.
When aggregate expenditure is given as Y = 400 + 0.5Y, short-run equilibrium output equals:
A. 400. B. 600. C. 1,200. D. 800.
Marginal utility is the change in:
A. total utility when an extra unit of output is produced. B. marginal utility when an extra unit of output is consumed. C. total utility when an extra unit of output is consumed. D. average utility when an extra unit of output is consumed.