This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Which of the following represents key strengths of the market economy as a system of allocation? a. ... (Read 29 times)

Lisaclaire

  • Hero Member
  • *****
  • Posts: 569
on: Jun 30, 2018
Which of the following represents key strengths of the market economy as a system of allocation?
 a. Goods and services are allocated based on willingness and ability to pay,rather than based on need.
 b. Producers have strong incentives to innovate because successful innovatorsare rewarded with higher profit.
 c. Since price is freely set based on supply and demand, shortages and surplusesare minimized.
 d. All of the answers above are correct.

Question 2

Assume General Motors has decided to build an assembly plant in St. Louis. The plant will employ 1,000 full-time workers at an annual wage of 40,000 each. If the marginal propensity to consume in St. Louis is 2/3, what change in income will result from operation of the plant for one year?
 a. 26.7 million.
  b. 40 million.
  c. 80 million.
  d. 120 million.


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

potomatos

  • Sr. Member
  • ****
  • Posts: 338
Reply #1 on: Jun 30, 2018
Answer to Question 1

d

Answer to Question 2

d


Lisaclaire

  • Member
  • Posts: 569
Reply 2 on: Jun 30, 2018
Wow, this really help

ashely1112

  • Member
  • Posts: 347
Reply 3 on: Yesterday
:D TYSM

« previous next »
 

Did you know?

In the United States, an estimated 50 million unnecessary antibiotics are prescribed for viral respiratory infections.

Did you know?

Eating food that has been cooked with poppy seeds may cause you to fail a drug screening test, because the seeds contain enough opiate alkaloids to register as a positive.

Did you know?

IgA antibodies protect body surfaces exposed to outside foreign substances. IgG antibodies are found in all body fluids. IgM antibodies are the first type of antibody made in response to an infection. IgE antibody levels are often high in people with allergies. IgD antibodies are found in tissues lining the abdomen and chest.

Did you know?

Most women experience menopause in their 50s. However, in 1994, an Italian woman gave birth to a baby boy when she was 61 years old.

Did you know?

Drug-induced pharmacodynamic effects manifested in older adults include drug-induced renal toxicity, which can be a major factor when these adults are experiencing other kidney problems.

A classification system for living and extinct organisms. A classification system for living and extinct organisms.
Motion of the barycenter of the Solar System relative to the Sun Motion of the barycenter of the Solar System relative to the Sun
The Rodent Accessory Olfactory System The Rodent Accessory Olfactory System
Blood Flow Through the Cardiorespiratory System Blood Flow Through the Cardiorespiratory System
Procedures for Diagnostic Tests Related to the Digestive System Procedures for Diagnostic Tests Related to the Digestive System
Sagittal section of the female pelvis, showing organs of the reproductive system. Sagittal section of the female pelvis, showing organs of the reproductive system.
Video: Mechanism of enzyme action

For a complete list of videos, visit our video library