Which of the Following Was Cited as Evidence of the Failure

question 58

Multiple Choice

Which of the following was cited as evidence of the failure of the capitalist system?

• A) the passage of Medicare
• B) the sharp drop in the price per share of Facebook immediately after its initial public offering
• C) the passage of the Homestead Act
• D) the collapse of some of the largest U.S. financial institutions and the real estate market in 2008
• E) the launch of Sputnik I

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Definitions:

MR

Marginal Revenue, the additional income that is gained from selling one more unit of a good or service.

Purely Competitive Seller

A seller operating in a market where there are many buyers and sellers, no barriers to entry, and products are homogenous, leading to perfect competition.

Total Fixed Cost

The sum of all costs that do not change with the level of output, such as rent, salaries, and insurance premiums.

Short Run

A period in which at least one factor of production is fixed, limiting the ability of a business to adjust to changing market conditions fully.