Under a laissez-faire system,
A. government organizes production and distribution of goods.
B. a small bureaucracy of central planners tells firms what to produce and how to produce it.
C. costs of production and consumers’ demands determine the output mix.
D. firms try to produce the goods that they think are good for consumers.
Answer: C
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Total profit can be calculated by:
a. c and e. b. subtracting total revenue from total costs. c. subtracting total costs from total revenue. d. finding the product of the difference between average profit and average total cost and the quantity produced. e. quantity produced times the difference between average revenue and average total cost.
A decrease in demand leads to a (an):
a. increased equilibrium price and an increased equilibrium quantity. b. decreased equilibrium price and a decreased equilibrium quantity. c. decreased equilibrium price and an increased equilibrium quantity. d. increased equilibrium price and a decreased equilibrium quantity.
Which of the following is part of the M1 definition of money?
a. stocks b. savings deposits c. time deposits d. demand deposits
Prices that adjust slowly are:
A. custom prices. B. auction prices. C. flexible prices. D. heavy prices.