In a market economy:
A. businesses design their plans to maximize their profit and the market is relied upon to see that individual self-interest is consistent with society's interest.
B. workers are directed by government planning boards to produce what is in society's best interest.
C. government owns the means of production so that it can produce what is in society's best interest.
D. government sets prices to make necessities affordable because it is in society's best interest to make necessities affordable.
Answer: A
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The country that spends the most per capita on healthcare is _____.
Fill in the blank(s) with the appropriate word(s).
When a central bank is acting as a lender of last resort, it is:
A. providing banks with Treasury bills for free. B. buying long-term Treasury bonds and selling short-term Treasury notes. C. buying Treasury bills directly from the public. D. providing banks with liquidity to meet their obligations.
In a contestable market,
A. There are economies of scale that heighten competition. B. An imperfectly competitive industry does not face any potential competition when profits increase. C. Many firms compete in producing a standardized product. D. Barriers to entry and long-run economic profits are low.
Why does Congress persistently provide subsidies for ethanol, a corn-based substitute for gasoline?
a. Ethanol is less corrosive and therefore automobile engines run more efficiently and last longer when operated with ethanol. b. Production of gasoline with ethanol is more economical. c. Legislators gain political support from corn farmers and ethanol producers even though it is more expensive to produce gasoline with ethanol. d. The production and distribution of ethanol is good for the environment.