Name the system in which the means of production and distribution are privately or corporate owned and development is proportionate to the accumulation and reinvestment of profits which are gained in a free market ?

Related Mcqs:

1. Suppose an oligopolist individually maximizes its profits. When calculating profits, if the output effect exceeds the price effect on the marginal unit of production, then the oligopolist ?

   A. Should produce more units
   B. has maximized profits.
   C. is in a Nash equilibrium
   D. Should produce fewer units
   E. should exit the industry.

2. When capital is owned by the firm as opposed to being directly owned by household capital income may take any of the following forms except ?

   A. interest
   B. dividends
   C. increases in stocks of goods
   D. retained earnings

3. If a producer has market power (can influence the price of the product in the market) then free market solutions ?

   A. are equitable.
   B. are efficient
   C. maximize consumer surplus
   D. are inefficient

4. If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?

   A. downward sloping
   B. perfectly inelastic
   C. upward sloping
   D. perfectly elastic

5. When a oligopolist individually chooses its level of production to maximize its profits it charges a price that is ?

   A. more than the price charged by either monopoly or a competitive market
   B. less than the price charged by either monopoly or a competitive market
   C. more than the price charged by a monopoly and less then the price charged by a competitive market
   D. less than the price charged by a monopoly and more than the price charged by a competitive market

6. When an oligopolist individually chooses its level of production to maximize its profits, it produces an output that is ?

   A. more than the level produced by a monopoly and less than the level produced by a competitive market
   B. less than the level produced by a monopoly and more than the level produced by a competitive market
   C. less than the level produce by either monopoly or a competitive market
   D. more than the level produced by either monopoly or a competitive market

7. If a market generates a side effect or externlity then free market solutions ?

   A. maximize producer surplus
   B. are efficient
   C. are inefficient
   D. are equitable

8. There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?

   A. Grey market
   B. Over-the counter (OTC)
   C. Open market
   D. Back market

9. If an input necessary for production is in limited supply so that an expansion of the industry raises costs for all existing firms in the market, then the long-run market supply curve for a good could be ?

   A. perfectly inelastic
   B. perfectly elastic
   C. upward sloping
   D. downward sloping

10. Because in-kind transfers are not accounted for in standard measures of income distribution the standard measures of income distribution ?

    A. accurately represent the true inequality of living standards
    B. understate the inequality of living standards
    C. exaggerate the inequality of living standards
    D. could exaggerate of understate the inequality of living standards depending on whether the transfers are goods or services.