What do you mean by the term 'free market'?
a. It refers to the process whereby buyers and sellers interact or trade under government regulation
b. It refers to the process whereby buyers and sellers voluntarily interact or trade without any interference or restrictions.
c. It refers to a market where buyers and sellers pay for goods and services in kind and not in cash.
d. It refers to a market where assets are traded after they have been sold in the primary market.
e. It refers to a market where the demand for the product being traded is not affected by a change in the price of the product.
b
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Table 10-1 Q (in units) AFC (in dollars) AVC (in dollars) MC (in dollars) 0 C C C 2 2.5 18 10 4 1.25 14 14 6 0.83 18 42 8 0.63 30 94 10 0.5 50 170 In Table 10-1 are the short-run cost schedules of a perfectly competitive firm. Below what price would the firm choose to shut down?
A. $50 B. $20 C. $18 D. $14
The McDonald's restaurants in Russia grow their own potatoes to guarantee that they are grown correctly. Growing potatoes is very different from running a fast-food restaurant. One could say of McDonald's decision to grow its own potatoes for the Russian franchise that
a. the bounded rationality criterion outweighs the need for quality control b. the bounded rationality criterion is outweighed by the need for quality control c. both bounded rationality and the need for quality control are factors that make it rational for McDonald's to grow its own potatoes d. growing potatoes is irrational e. there must not be many potato suppliers in Russia
During the three years following the financial crisis of 2008,
a. the monetary base more than doubled and the M1 money supply increased even more rapidly. b. the monetary base more than doubled, but the M1 money supply increased much less rapidly. c. the monetary base fell by almost 50 percent, but the M1 money supply continued to grow at a steady rate. d. the monetary base fell by almost 50 percent, causing a sharp reduction in the M1 money supply.
Which of the following statements is true?
A. GDP is greater than national income, which is greater than NDP. B. Government spending is the largest sector of GDP. C. A Social Security check sent to a retiree is counted as part of GDP. D. The purchase of a new factory is counted in the investment sector of GDP.