An increase in the price of beef providers information which ? A. provides no information because prices in a market system are managed by planning boards. B. tells consumers to buy less porkC. tells producers to produce more beef. D.…
High and persistent inflation is caused by ? A. unions increasing wages too much B. OPEC raising the price of oil too much C. governments increasing the quantity of money too much D. regulations raising the cost of production too…
Which of the following statements is true about a market economy ? A. With a large enough computer, central planners could guide production more efficiently than markets.B. Market participants act as if guided by an invisible hand to produce outcomes…
Which of the following products would be least capable of producing an externality ? A. inoculations against disease B. cigarettesC. food D. education E. stereo equipment
-7-+47-+45-+-+Since people respond to incentives, we would expect that if the average salary of accountants increases by 50% while the average salary of teachers increase by 20% then ? A. Fewer students will take degree courses in education and more…
Suppose you find Rs 20. If you choose to use the Rs 20 to go to a football match your opportunity cost of going to the game is ? A. nothing because you found the money.B. Rs20 (because you found…
A rational person does not act unless ? A. the action is ethical B. The action produces marginal costs that exceed marginal benefits.C. The action produces marginal benefits that exceed marginal costs. D. The action makes money for the person.
Trade-offs are required because wants are unlimited, and resources are ? A. economical B. unlimited C. EfficientD. Scarce
Which one of the following is a normative statement ? A. The richest 10 per cent of the population has had a bigger percentage increase in incomes over the past 10 years than the poorest 10 percent B. Inflation is…
In a free market system, the amount of goods and services that any one household gets depends upon its ? A. incomeB. income and wealth C. wealth D. wage and interest income