Which of the following is true in a market economy?
A. Central planners determine answers to the basic economic questions.
B. Resources are used efficiently.
C. The distribution of wealth is equal.
D. Information for production and distribution decisions pass directly to buyers from the government.
Answer: B
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Which antitrust law prohibited firms from buying stock in competitors and from having directors serve on the boards of competing firms?
A) the Sherman Act B) the Robinson-Patman Act C) the Clayton Act D) the Securities and Exchange Act
In the above figure, what is the opportunity cost of one bushel of soybeans?
A) 1 bushel of corn B) 0.5 bushels of corn C) 2 bushels of corn D) unable to determine
Economists have developed models of risk aversion using the concept of
a. utility and the associated assumption of diminishing marginal utility. b. utility and the associated assumption of increasing marginal utility. c. income and the associated assumption of diminishing marginal wealth. d. income and the associated assumption of increasing marginal wealth.
Assume a series of forest fires reduces the supply of lumber, which is an input in the production of wooden bats. Baseballs and wooden bats are complements. If the price of wooden bats increases, we can expect the
A. Demand for baseballs to decrease. B. Supply of baseballs to decrease. C. Supply of baseballs to increase. D. Demand for baseballs to increase.