Explain the role of prices in allocating scarce resources in a market economy. Discuss the view that that the use of max...
Explain the role of prices in allocating scarce resources in a market economy.
Discuss the view that that the use of maximum and minimum price controls only serve to distort markets and bring about a misallocation of resources.
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Explain the role of prices in allocating scarce resources in a market economy. Discuss the view that that the use of max...
Economics is a social science concerned with: The best use of scarce resources to achieve the...
Economics is a social science concerned with: The best use of scarce resources to achieve the maximum satisfaction of economic wants. Increasing the level of productive resources so there is a minimum level of income. Increasing the level of productive resources so there is maximum output in society. The best use of scarce resources paid for at the minimum level of cost to consumers and businesses. Answer: A person should consume more of something when its marginal: benefit exceeds...
1.In a capitalist economy, the market value of something is determined by......and....... Prices are the quantification...
1.In a capitalist economy, the market value of something is determined by......and....... Prices are the quantification of those values in terms of the money that is used. When the supply of something is high, relative to demand, the price will be........ When the demand for something is .........relative to the supply, the price will be high. When the....... for something is low relative to the......., the price will be high. Prices play an important role in the market economy because...
(21) To move from a system of central planning to a market system, an economy generally...
(21) To move from a system of central planning to a market system, an economy generally implements which of the following steps? Nationalization of industry Privatization of capital Regulation of prices Transition from agriculture to industry (22) Which of the following factors contributed to the difficulty of the transition in the former Soviet Union? Capital was not privatized. Households preferred the communist system. Free market institutions were not in place. Tax rates were excessively high. ...
QUESTION 1 Which of the following institutions plays no role in allocating resources in a modern...
QUESTION 1 Which of the following institutions plays no role in allocating resources in a modern market-oriented economy? A. Households B. Firms C. Government D. Custom/Tradition E. All of the above play some role on allocating resources even in a modern market-oriented economy. 1 points QUESTION 2 Which of these terms describes the process of generating theories from individual facts? A. induction B. abstraction C. reduction D. calculation E. deduction 1 points QUESTION 3 Which of the following is a...
o Equity Markets Discuss the role of the various stock exchanges in the equity market and...
o Equity Markets Discuss the role of the various stock exchanges in the equity market and determine if they are used for initial public offerings. What is an initial public offering (IPO) and why would a company follow this course? How do companies determine when they will go public? An IPO can be used to buy out a venture capitalist. How does this work, and what role could a venture capitalist play in the growth of the company? Explain the...
2. Production Possibilities: (a) Suppose an economy produces food and housing. Draw and explain the char-...
2. Production Possibilities: (a) Suppose an economy produces food and housing. Draw and explain the char- acteristics of its production possibility curve. Explain the impact of (i) a new technology that improves food production and (ii) a new invention that improves both food and housing production. (b) Explain how improvements in education may shift an economy's production pos- sibility frontier. (c) Consider the following three uses of government spending: the purchase of a nu- clear weapon, a “hot meals" program...
Step 1: Read the following questions, and use what you have learned about how the economy might impact your business in...
Step 1: Read the following questions, and use what you have learned about how the economy might impact your business industry, and to summarize your responses in 5 full pages. Consider the concepts and questions below when assessing the economy and the impact it may pose on your business: Describe your ideal capitalist economy. Will these conditions maximize your sustainability and profitability? What indicators would you use to measure goods and services? What happens when the quantity demand is impacted?...
1. A. Suppose we have two goods. The price of good 1 is 10 and the...
1. A. Suppose we have two goods. The price of good 1 is 10 and the price of good 2 is 15. The income is 30. Construct a diagram with the quantities on X- and Y-axes and draw a budget line in the diagram. B. How do the prices and the income affect the shape of the graph? What happens if the price of one good rises? What happens if income increases? C. Define the Law of Diminishing Marginal Utility...
Media Analysis Question In today's economy, many sectors telecoms, cable TV, digital branches from social media...
Media Analysis Question In today's economy, many sectors telecoms, cable TV, digital branches from social media to internet search, health insurance, pharmaceuticals, agro-business, and many more cannot be understood through the lens of competition. In these sectors, what competition exists is oligopolistic, not the "pure" competition depicted in textbooks. A few sectors can be defined as "price taking": firms are so small that they have no effect on market price. Agriculture is the clearest example, but government intervention in the...
QUESTION 1 Economists use the word marginal to mean 1. A decision that is only secondary...
QUESTION 1 Economists use the word marginal to mean 1. A decision that is only secondary in importance. 2. The extra benefit or cost of a decision. 3. When firms concentrate on their profit margin. 4. When an economy is producing efficiently. 5 points QUESTION 2 Economists use the word rationality to mean.... 1. When people correctly analyze a situation and come to the best decision possible. 2. Only a hypothetical scenario, people are never really rational. 3. When...
2. Production Possibilities: (a) Suppose an economy produces food and housing. Draw and explain the char- acteristics of its production possibility curve. Explain the impact of (i) a new technology that improves food production and (ii) a new invention that improves both food and housing production. (b) Explain how improvements in education may shift an economy's production pos- sibility frontier. (c) Consider the following three uses of government spending: the purchase of a nu- clear weapon, a “hot meals" program...
1. A. Suppose we have two goods. The price of good 1 is 10 and the price of good 2 is 15. The income is 30. Construct a diagram with the quantities on X- and Y-axes and draw a budget line in the diagram. B. How do the prices and the income affect the shape of the graph? What happens if the price of one good rises? What happens if income increases? C. Define the Law of Diminishing Marginal Utility...
Media Analysis Question In today's economy, many sectors telecoms, cable TV, digital branches from social media to internet search, health insurance, pharmaceuticals, agro-business, and many more cannot be understood through the lens of competition. In these sectors, what competition exists is oligopolistic, not the "pure" competition depicted in textbooks. A few sectors can be defined as "price taking": firms are so small that they have no effect on market price. Agriculture is the clearest example, but government intervention in the...
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