In a market capitalist economy:
A) factors of production are owned privately and decisions about their use are basically made by individuals.
B) factors of production are owned by the government but decisions about their useare made privately.
C) private ownership exists but decisions about resource allocation are usually made centrally by the government.
D) there is no role for the government.
Ans: A) factors of production are owned privately and decisions about their use are basically made by individuals.
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The first claim on a corporation's after-tax profits is held by the
a. consumers b. managers c. stockholders d. bondholders e. government
If the supply of a good is relatively inelastic, this means that the quantity supplied of the good is
a. not very sensitive to the price of the good. b. highly sensitive to the price of the good. c. unrelated to the price of the good. d. none of the above.