Exam 2: The Market System and the Circular Flow

"Because the outputs of many industries are the inputs to other industries, the failure of any single industry to fulfil the output quantities specified in the central plan caused a chain reaction of adverse Repercussions on production." This quotation best identifies the

Economic efficiency entails producing a certain output with the minimum number of units of inputs.

(Consider This) Low-cost production is not important for Bitcoin miners since Bitcoin is intangible and exists only in cyberspace.

The invisible hand concept suggests that

Households and businesses are

What are the Five Fundamental Questions that every economy must answer?

Suppose a ?rm can produce 70 units of a product, Zenia, by combining labor, land, capital, and entrepreneurial ability, as in the four alternative techniques shown in the table below. Assume further That the ?rm can hire labor at $3 per unit, land at $3 per unit, capital at $6 per unit, and entrepreneurship At $9 per unit. $~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~Techniques$ A B C D Labor 4 10 6 5 Land 5 3 3 3 Capital 5 2 4 4 Entrepreneurship 1 1 1 1 Refer to the provided table. Which technique is the most economically e?cient way of producing Zenia?

Command systems are also known as

Which of the following best illustrates the circular flow model in action?

In a competitive market economy, firms and resource suppliers seeking to further their own self-interest will end up, as though guided by an invisible hand, promoting the public interest.

"Consumer sovereignty" means that

The market system's answer to the fundamental question "How will the goods and services be produced?" is essentially

If people tried to produce most of what they need on their own, then this would lead to a more efficient use of the economy's resources.

If a nation restricts trade with other nations, then the most likely effect is

In the circular flow model of the market system, business's major role is to

(Last Word) Which of the following helps explain why the economy of Venezuela has collapsed?

Which of the following does not illustrate the idea of creative destruction?

In a market system,

Explain the main characteristics of a corporation.

(Consider This) The Bitcoin currency is issued by