The price mechanism
A. works best when many competing business firms are in each industry.
B. works best when government through a central planning agency sets prices.
C. works best when corporations set prices for a market economy.
D. All of the choices are true about price mechanism.
A. works best when many competing business firms are in each industry.
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A player is playing a pure strategy when:
A. he chooses a rule to randomize over the choice of a strategy. B. he chooses a strategy without randomizing. C. there is uncertainty in his choice. D. it is not perfectly predictable.
Is measuring the effect of discrimination on wages relatively easy or relatively difficult? Explain?
The "invisible hand" using Adam Smith's terminology refers to:
a. "behind-the-scenes" policy making to influence how markets allocate scarce resources. b. market forces working through the price mechanism. c. the money supply that serves to keep the economy working smoothly. d. government control of the market. e. the role of innovation in maintaining a steady rate of growth.
When banks receive new deposits, they can make new loans and thus create money:
A. equal to the full amount of the new deposits. B. up to the amount of their checkable deposits. C. only up to the amount of their excess reserves.