ECON 232 - Indicate whether each of the following decisions is more characteristic

1. Indicate whether each of the following decisions is more characteristic of a primarily market-oriented economy or of a primarily command-oriented economy:

a. a family decides to start a restaurant;

b. a business decides to lay off workers;

c. the government announces a plan for the national economy to focus on producing high

technology goods;

d. the government imposes an steep tax increase

2. In each of the following cases, state (i) whether the action is happening in the goods market, the labor market, or the financial capital market, and (ii) whether it is on the supply side or the demand side of that market.

a. Abe walks to the corner store for a quart of milk;

b. Bertha makes a deposit in a bank savings account;

c. Cory’s Cab Company opens for business;

d. Druscilla takes a job cutting hair;

e. Edwardo gets a student loan;

f. Ferdinand borrows money from the bank to buy a new truck for his trash-hauling business;

g. Griselda’s Grocery decides to hire two more cashiers.