Discuss the three basic types of economic systems.
What will be an ideal response?
Three basic economic systems are the traditional, command, and market systems. The traditional system is based on decisions made according to custom, and the command system answers the three economic questions through some powerful central authority. In contrast, the market system uses the impersonal mechanism of the interaction of buyers and sellers through markets to answer the What, How, and For Whom questions.
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Refer to Scenario 3.1 below to answer the question(s) that follow.SCENARIO 3.1-Streaming movies and movies shown in theaters are substitutes. -Streaming movies and OLED TVs are complements. -OLED TVs and movies shown in theaters are normal goods. -People watch streaming movies more often in the winter than in the summer.Refer to Scenario 3.1. In response to complaints from movie theater owners, the government removes an entertainment tax on movie tickets, but there are no additional taxes levied on streaming movies. This would lead to
A. a decrease in the price of movie tickets and the price of streaming movies. B. no change in the price of a movie ticket and a decrease in the price of streaming movies. C. a decrease in the price of movie tickets, but no change in the price of streaming movies. D. a decrease in the price of a movie ticket and an increase in the price of streaming movies.
According to Adam Smith, the "invisible hand" refers to
The effects of a decrease in export demand
A) is a powerful argument in favor of fixed rates. B) is a powerful argument in favor of flexible rates. C) shows the difficulties in determining which exchange rate is better. D) is a powerful argument in favor of fixed rates only in the short run. E) is a powerful argument in favor of fixed rates only in the long run.
Illegal immigrants pay social security tax. Therefore, they receive social security benefits on retirement
a. True b. False Indicate whether the statement is true or false