In a free market economy, current consumption, saving and investment decisions
A) shape the future course of the national economy.
B) are necessarily controlled by big businesses.
C) require protection from foreign forces if individuals desire wealth accumulation.
D) are controlled largely by the government.
A) shape the future course of the national economy.
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Suppose that in 2011, 4 million plasma TVs were purchased at $950 each, while in 2012, 3 million plasma TVs were purchased at $800 each. What might have caused this change?
A) The price of LCD TVs (a substitute for plasma TVs) fell. B) The price of LCD TVs (a substitute for plasma TVs) rose. C) Plasma TV manufacturing technology decreased. D) Plasma TV manufacturing technology increased.
Say's Law states that by purchasing goods and services, buyers stimulate firms to produce goods and services equal to what has been purchased: Demand creates its own supply
a. True b. False
A minimum wage law might increase wages without reducing employment if the hiring firm is
a. in perfect competition. b. a monopolist. c. a monopolistic competitor. d. a monopsonist.
Foregone investment opportunities are an example of
a. an explicit cost. b. an implicit cost. c. revenues. d. profits.