Under a laissez-faire system,
a. government organizes production and distribution of goods.
b. a small bureaucracy of central planners tells firms what to produce and how to produce it.
c. costs of production and consumers' demands determine the output mix.
d. firms try to produce the goods that they think are good for consumers.
c
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With everything else the same, in the foreign exchange market which of the following increases the supply of U.S. dollars?
I. a fall in the U.S. interest rate II. a fall in interest rates in foreign countries III. a rise in expected future exchange rate A) I only B) I and II only C) I and III only D) I, II, and III
What three conditions must hold for a firm to successfully price discriminate?
What will be an ideal response?
Microeconomics is the study of
A) aggregate measures of the economy. B) economic issues for an entire region. C) federal budget details. D) individual decision making.
Other things equal, which of the following would decrease the rate of economic growth, as measured by changes in real GDP?
A. An increase in the educational attainment of the labor force. B. A permanent decrease in frictional unemployment. C. An increase in the amount of capital per worker. D. A decrease in the labor force participation rate.