Competition among sellers generates
A) allocative efficiency. B) productive efficiency.
C) equity. D) scarcity.
B
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How does an increase in the short-term interest rate affect peoples' desire to hold real money balances?
A) People will hold more money to compensate for the higher interest rate. B) People will hold more money in anticipation of higher inflation. C) People will hold less money since they would be sacrificing more interest by holding money. D) People will hold less money since it is not worth as much.
Free trade leads to an overall improvement in the standard of living in a country because everything is produced at the lowest possible cost
a. True b. False Indicate whether the statement is true or false
Suppose the market for shoes consists of three consumers. The accompanying table shows the quantity demanded at various prices for each consumer:PricePer PairPairs Demandedby PatPairs Demandedby LeighPairs Demandedby Chris$100010$75031$50173$302105 What is the market demand for shoes when the price is $50 a pair?
A. 15 pairs B. It will depend on the quantity supplied when the price is $50 a pair. C. 7 pairs D. 11 pairs
Which of the following is not a problem associated with barter?
a) tax rates are generally higher on barter than on monetary transactions b) the quality of goods used in barter may differ across time and place c) transporting goods for use in barter is inconvenient d) goods used in barter may not be easily divisible e) barter requires a double coincidence of wants