I- consumers receive goods for which they are willing to pay
II- Production resources hire out to maximize income)
III- the market determines available labor and capital
IV- the market distributes income among rich individuals
A. III and IV only
B. II and III only
C. I, II and III only
D. I, II, III and IV
Related Mcqs:
- Skilled labor is relatively scarce because ?
A. there are too few teachers
B. too few student places in higher education
C. it is costly to acquire human capital
D. teachers’ salaries are too low - A graph showing all the combinations of goods and services that can be produced if all of society’s resources are used efficiently is a ?
A. capital consumption frontier.
B. Lorenz curve.
C. Circular-flow diagram.
D. Production possibility curve. - When markets fail to allocate resources efficiently, the ultimate source of the problem is usually ?
A. government regulation
B. that prices are not low enough so firms over produce
C. that prices are not high enough, so people overconsume
D. that property rights have not been well established - 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 - 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 - 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 - A set of alternative commodity bundles that a person can command in a society using the totality of rights and opportunities that he possesses is known as ?
A. Production possibilities
B. entitlement
C. income distribution
D. egalitarianism - Polish economist Oskar Lange’s model of decentralized ______ combined the advantages of market allocation with more uniform income distribution by dividing the returns from social ownership of nonhuman productive resources among the whole population ?
A. market socialism
B. capitalism
C. mixed economy
D. monopoly - Which industrialization policy have developing countries used which places emphasis on the comparative advantage principle as a guide to resource allocation ?
A. export promotion
B. import promotion
C. international commodity agreements
D. multilateral contracts - A common resource is ?
A. not rival but excludable
B. both rival and excludable
C. rival but not excludable
D. neither rival nor excludable
