Discuss the three basic types of economic systems
Three basic economic systems are the traditional, command, and market systems. The traditional system is based on decisions made according to custom, and the command system answers the three economic questions through some powerful central authority. In contrast, the market system uses the impersonal mechanism of the interaction of buyers and sellers through markets to answer the What, How, and For Whom questions.
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When a supply and demand model is used to analyze the market for labor,
a. demand is generally no longer downward sloping. b. the wage rate is used on the vertical axis as the market price. c. employment is used on the horizontal axis as the market quantity. d. both b and c.
The shape of the firm's marginal revenue curve depends ultimately on whether the firm is
A. a revenue maximizer or a profit maximizer. B. owned by a man or a woman. C. a monopolist or a perfect competitor. D. a market share maximizer or a sales maximizer.