Which statement best describes a capitalist economy?
A. The production and allocation of goods and services is determined primarily through government.
B. The production of goods and services is determined primarily by markets, but the allocation of goods and services is determined primarily by government.
C. The production of goods and services is determined primarily by government, but the allocation of goods and services is determined primarily by markets.
D. The production and allocation of goods and services is determined primarily through markets.
Answer: D
You might also like to view...
If the MPC in an economy is 0.75, government could shift the aggregate demand curve leftward by $60 billion by
A. reducing government purchases by $60 billion. B. reducing government purchases by $12 billion. C. increasing taxes by $15 billion. D. increasing taxes by $20 billion.
The U.S. tax system at both the federal and state levels is ________
A) regressive B) proportional C) progressive D) negative
If an individual's supply of labor curve is "backward bending," (that is, labor supply falls at high wage rates) then:
a. the substitution effect always dominates the income effect. b. the income effect always dominates the substitution effect. c. the substitution effect dominates at low real wage levels and the income effect dominates at high real wage levels. d. the income effect dominates at low real wage levels and the substitution effect dominates at high real wage levels.
Economists who argue that the AS curve is vertical in the long run at potential output also argue that in the long run, the ________ is vertical at the natural rate of unemployment.
A. aggregate demand curve B. Phillips curve C. aggregate expenditures curve D. production possibility curve