A social system could eliminate profits and losses if it could
A) eliminate greed and selfishness.
B) eliminate uncertainty.
C) fix all prices to reflect opportunity costs.
D) fix all prices to reflect the value of the labor embodied in goods.
E) tax all receipts above cost and redistribute them to firms unable to cover all their costs.
B
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The government budget constraint implies that
A. government borrowings = government spending+ transfers - taxes and user charges. B. government spending = government borrowing - transfers - taxes and user charges C. government spending = transfers - taxes and user charges - government borrowing. D. government borrowings = taxes and user charges + government spending - transfers
Goods and services are sold
A. in the factor markets. B. by households. C. only as intermediate goods. D. in the product markets.