Profit is the main motive in free-market economies.
The idea that since sonsumers act towars self-interest, it results in an allocation of resources in the economy is known as
Invisible hand
Market mechanism
Functions of price
One of the greatest advantages of a command economy is that there are monopolies under close government supervision.
What is the equation to calculate productivity?
production/labor and time
labor and time/production
The maximum possible output that can be achieved given a fixed set of resources is also known as
opportunity cost
efficient production
production possibilities frontier
Which factor shapes the PPF?
introduction of new resources
comparative advantage
demand for a certain product
"The government only supplies goods and services to those who bribe it. Its corruption has destroyed our economy." This is an example of a normative statement
"Colombian coffee has been described as one of the best in the world." This is an example of a value judgement.
What does the equi-marginal principle show you?
How to maximize your utility when you have more than one good
How to measure the amount of satisfaction gained from a certain good or service.
How an increase in production results in a decrease of the average costs.
Which of the following economies of scale are not internal?
Financial Economies of Scale
Risc Bearing Economies of Scale
Marketing Economies of Scale
Technical/Production Economies of Scale
Vertical Integration Economies of Scale
