Complete Question:
The market system:
A. produces considerable inefficiency in the use of scarce resources.
B. effectively harnesses the incentives of workers and entrepreneurs.
C. is not consistent with freedom of choice in the long run.
D. has slowly lost ground to emerging command systems.
Answer:
B. effectively harnesses the incentives of workers and entrepreneurs.
Explanation:
An economic system can be defined as a series of governmental or societal arrangements and a coordinating mechanism used for the allocation of available resources, economic inputs, goods and services across a particular country. The economic system differs according to the method used to coordinate economic activities and who the factors of production belongs to.
Generally, there are basically two (2) main types of economic systems and these are;
1. Command systems.
2. Market systems.
The market system effectively harnesses the incentives of workers and entrepreneurs because workers are able to engage in division of labor and are well compensated for their efficiency in service while the entrepreneur are usually rewarded with an increase in sales and profits.
The market system allows participants to have property rights such as trademarks, patents and copyright. Also, market systems are regulated by the competition among individuals (traders or entrepreneurs) and this gives direction to the market as they pursue self interests and are independent.
<span>Primary markets include assets that can only be redeemed by the original holder.</span>
Answer:
i added the graph of both markets as an attachment
The answer is market B or 2. This market a higher level of unemployment.
When elasticity of supply increases, we have it that the suppliers would have greater market power.
In market B, we have it that the elasticity of supply is bigger than that if A. This means that the supplier has more market power in this market than in market A.
Since the elasticity us greater in this market, then we would have change in unemployment due to a fall in demand to be more here than in A.
Answer:
The correct answer is ) constant returns to scale.
Explanation:
Because in the long term there are no more fixed inputs, the distinction between variable and fixed inputs disappears and there are no CFT or CVT curves. In reality, it is only necessary to look at the nature of the shape of the average cost curve in the long term. Suppose that technological constraints allow a company to choose between the construction of three plants of different sizes: small, medium and large.
This line is called the average long-term cost curve (CPLP) and shows the minimum unit cost for any production when all inputs are variable and it is possible to build all plant sizes. The dashed lines of the CPCP curves always correspond to higher costs for each production than can be obtained with plants of other sizes.
Obviously, the final choice will depend on market demand and consumer demand trends, generally favoring larger plants in future proposals. Otherwise, the medium plant will be the most attractive, due to its lower investment requirements. Usually the firm will have more than 3 sizes to choose from. When this number tends to infinity, the CPLP curve encloses the CP curves and is tangent to them.
Answer:
B. a decrease; a decrease
Explanation:
Substitutes' goods are products that can be consumed in place of each other. If one product is missing, consumers will be ready and willing to buy its substitute. An increase or fall in the price of a good or services will cause the demand for its substitute to move in the opposite direction.
Equilibrium quantity is when supply matches the demand. If the price of Tuna fish decreases, its demand will increase as more customers will afford it. Tuna and chicken are substitutes, should the price of Tuna decrease, customers will prefer to consume Tuna over chicken. Consequently, the demand for chicken will reduce w leading to a decrease in its price.
