The competitive equilibrium determines the absolute price of each of the goods based on the endowments and marginal rates of substitution
Indicate whether the statement is true or false
False. Only relative prices are determined by competitive equilibrium. In order to determine the absolute prices, one of the goods' prices must be given (or assumed to =1).
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Your textbook argues that in a market system income is earned and "distributed"
A) in the process of its creation. B) as a result of the supply and demand for productive services. C) in ways that might not be considered "fair" in all cases. D) in all of the above ways.
The ________ of the U.S. economy during World War II, with its vast defense spending, ________ of Keynesian macroeconomics
A) continued stagnation, established the supremacy B) continued stagnation, was the demise C) rapid recovery, established the supremacy D) rapid recovery, was the demise
In some cases, firms that are accused of antitrust violations by federal authorities will plead guilty to the criminal charges in order to avoid facing the same charges in a private or civil trial. Why?
A) Attorneys in civil cases tend to be more effective at proving their claims. B) The penalties for a conviction in a civil or private case are treble damages, or three times larger than the penalties in a criminal or public case. C) Judges in criminal cases are known to be more lenient. D) none of the above
Which of the following organizations is a powerful union in the public sector?
a. American Medical Association (AMA) b. National Education Association (NEA) c. National Rifle Association (NRA) d. United Automobile Workers (UAW)