You are watching: Which of the following statements does not apply to a market economy?
32. Option C Prices act as an invisible hand also and not an visible hand also to straight economic activities in allocating scarce sources.Price device operates via demand also and supply prices. At higher prices, consumers demand also less so demand curve slope…View the complete answer
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Transcribed picture text: 32. Which of the following statements does NOT use to a industry economy? a. Firms decide whom to hire and also what to produce b. Households decide which firms to work-related for and also what to buy via their incomes. c. Prices act as a "visible hand" to straight economic tasks in allocating scarce sources. d. Prices act as an "invisible hand"' to straight economic activities in allocating scarce sources.. 33. In economics, the price of something is what you give as much as obtain it. For instance, the adage, is provided to illustrate the principle that civilization face tradeoffs and linked via possibility prices. As you hav college is not a free lunch, what is the opportunity expense of going to college? a. the cost that the paleas pay for their youngsters to attfinish the college. b. the value of the finest chance that a student gives up to attfinish college such as functioning. c. the complete spent on food, clothes, books, transport, tuition, lodging, and also various other exp d. zero, because a college education and learning will certainly permit a student to earn a bigger income after graduation. Tbelow is no such point as a 34. In the straightforward circular-flow diagram, the participants in the economic situation are family members and also firms. In the circular-flow diagran which of the complying with items flows from firms to families with the markets of components of production? a. determinants of production such as land, labor, or capital b. dollars paid to land, labor, and funding. d. products and also solutions. c. dollars invested on items and services. 35. The usage of concept and observation is more challenging in business economics than in scientific researches such as physics because of the difficulty in conducting a regulate experiment in an economic system is not simple to conduct. Thus, to refute their theories, economic experts regularly data from historic episodes of economic change. Which of these statements about financial models a. For financial experts, economic models carry out insights about the people. b. Economic models are constructed without assumptions c. Economic models are frequently created of equations and also diagrams. d. All of the over are correct. When an economist evaluates a positive statement, he or she is generally examining proof. Therefore, which of the followir 36. example of a positive, as opposed to normative, statement? a. When the amount of money grows rapidly, inflation is a predictable c e taxes rates should not have been reduced as they were a couple of years ago. b. Incom c. The quantity of money has actually grvery own too gradually in recent years. d. All of the over are positive statements ppose the USA has a comparative benefit over Mexico in creating cars. The principle of comparative ad 37. Su asserts that a. b. the United States must develop a modeprice amount of cars and also import the remainder of what it requires from Mexico. the United States must refrain altogether from creating cars and import every one of what it calls for from Mexico. United States must produce even more cars than what it calls for and export some of it to Mexico d. Mexico has nothing to obtain from importing USA cars.