An unplanned economy operating under laissez-faire
A. allocates resources by market supply and demand.
B. cannot respond to basic questions about production and distribution.
C. shows breakdowns with frequent surpluses and shortages.
D. allocates goods and services under government subsidy.
Answer: A
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How does the science of economics deal with the fact that we all have different values?
A) by assuming that values don't play a role in economic behavior B) by seeking to discover the sources of different value systems C) by using positive analysis D) by surveying the public to see what the most common values are, and then incorporating those as assumptions into their models
When residents surrounding an airport complain about noise from aircraft landings and takeoffs, the relevant economic analysis is that of
A. externalities. B. equality-efficiency trade-off. C. comparative advantage. D. the cost decrease of the service sector. E. the cost disease of personal services.
Which of the following goods is rival in consumption and excludable?
a. a fireworks display b. national defense c. a box of sparklers d. a parade
A production possibilites frontier is a strait line when
a. the more resources the economy uses to produce one good, the fewer resources it has available to produce the other good. b. an economy is interdependent and engaged in trade instead of self-sufficient. c. the rate of tradeoff between the two goods being produced is constant. d. the rate of tradeoff between the two goods being produced depends on how much of each good is being produced.