Which of the following is an essential feature of any economic system?
a. absolute advantage
b. the profit motive for producers
c. a voting procedure for choosing leaders
d. prices determine resource allocation
e. scarce resources
E
You might also like to view...
By law, banks are required to
A) hold 100 percent of customer deposits as reserves. B) hold a fraction of demand deposits as reserves. C) hold a fraction of their reserves at the Federal Reserve bank. D) lend out no more than the amount of their required reserves.
Which of the following is a correct reason for stating that the United States has a fiduciary monetary system? I. Our money is convertible to a fixed amount of silver or gold. II. Our money has a predictable value
A) I only B) II only C) Both I and II D) Neither I nor II
Licensing laws
a. are illegal in most industries b. serve to increase wage rates in some industries c. lead to higher employment levels in some industries d. reduce the quality of labor in a particular market e. are rarely effective at increasing wage rates
Which of the following would erode the monopoly pricing power of a firm that was controlling a market?
A. The development of substitutes for the product by other firms. B. New technology developed by the firm that lowered long run average costs. C. A tax on corporate profits. D. All of these would reduce the monopoly power of the firm.