What is the type of mechanism that answers the basic economic questions through

Question

What is the type of mechanism that answers the basic economic questions through a decentralized decision making process? Dictatorship Command and control Market system Mixed economic system If the 2009 is the base year, what is the price index for a market basket of goods for 2010 in the ABOVE table? 102.8 Zero, since the price of CDs fell and the price of gasoline increased 97.3 128.0 According to the law of supply people buy more of good when the price increases. products provide more of a good when the price decreases. producers provided less of a good when the price decreases people buy less of a good when the decreases. Which of the following is true of unemployment? It is defined as the number of people actively looking for work who do not have jobs. The results is that the economy operates inside its production possibilities curve. There are psychological consequences associated with unemployment. All of the above. Carlos is an executive of a major corporation. Boris is a baker. Carlos earns a salary ten times as large as the salary Boris earns, and Carlos has a much larger oven for baking break. Carlos can make a loaf of bread that tastes better then Boris's bread but Boris can bake faster. Carlos has an absolute but not comparative advantage over Boris in making bread. Carlos does not have an absolute or comparative advantage over Boris in making bread. Carlos had a comparative but not absolute advantage over Boris in making bread. Carlos has an absolute and comparative advantage over Boris in making bread.

Explanation / Answer

9. D) mixed economic system

10. Price index is computed by calculating p*q that is the value of basket of goods for each year.

Value in year 2010= 24*10+ 200*2.5= 240+ 500= 740

Value in year 2009= 32*10+ 200*2= 720

Price index = Value in year 2010/ value in 2009= 740/720*100 = 102.8 option A

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