Which of the following is a correct characterization of socialism?
a. Tradition answers the basic economic questions.
b. Markets are used exclusively to answer the basic economic questions.
c. Central planning is seldom used to answer the basic economic questions.
d. Government ownership of many resources and centralized decision-making answers the basic economic questions.
d
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In financial markets, actual market prices sometimes diverge from the equilibrium price because
A) supply is often greater than demand. B) demand is often greater than supply. C) supply is equal to demand. D) of geographical and temporal fragmentation.
Good Patties is a chain fast-food hamburger restaurant that wants to expand into a foreign market. The managers of Good Patties are most concerned about the financial commitment and desire to keep the potential cost as low as possible. Which of the following entry methods is most likely to address the managers' financial concerns?
A) acquiring a foreign firm through a merger B) establishing a local office/restaurants managed by one of Good Patties' managers C) franchising D) independent entry
Two important roles of government in the economy are to safeguard private property and enforce contracts
a. True b. False
Once active discrimination ends, it:
A. is quickly forgotten, and efficiency is reached. B. no longer affects people or markets. C. can have long-lasting effects on people and markets. D. None of these is true.