In a capitalist economy,
A. the state controls the means of production.
B. the means of production are mostly owned by private individuals.
C. economic decisions are centralized.
D. government officials decide what to produce, how to produce it and who gets it.
B. the means of production are mostly owned by private individuals.
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For most firms, average total costs will decrease initially due to decreasing marginal physical product for the inputs used in the production process
Answer the following statement true (T) or false (F)
Other things equal, an increase of Treasury bonds from $100 billion to $120 billion in the economy would:
A. not change the size of the public debt.
B. increase the public debt from $460 billion to $480 billion.
C. increase the public debt from $400 billion to $420 billion.
D. decrease the public debt by $20 billion.
The macroeconomy is said to be in long-run equilibrium only if
a. the resource, loanable funds, foreign exchange, and goods and services markets are all in equilibrium. b. prices were incorrectly estimated by decision makers. c. the output of the economy exceeds the full-employment level of output. d. the economy is operating along its short-run aggregate supply curve.
A horizontal merger takes place when
A. a firm acquires a competitor. B. similar firms agree to compete. C. firms in different industries merge. D. a firm diversifies by merging with a foreign firm.