A Mixed Economy Is One in Which

question 115

Multiple Choice

A mixed economy is one in which:

• A)decisions are based primarily on religion or custom.
• B)all resources are publicly owned and economic planning is centralized.
• C)all resources are privately owned and prices are used to coordinate economic activity.
• D)resources are both publicly and privately owned and some markets are regulated.
• E)all resources are publicly owned and prices are used to coordinate economic activity.

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Definitions:

Constant Returns to Scale

A situation in which increasing the amount of inputs in production results in a proportional increase in output.

Long-run Total Costs

The total costs incurred by a firm when all factors of production are variable, emphasizing the period where no costs are fixed.

Average-fixed-cost Curve

A curve that shows the relationship between the average fixed cost of producing a good and the quantity of the good produced, typically declining as production increases.

Marginal Product

The increase in output that results from employing one more unit of a particular input, holding all other inputs constant.