In the price system
A) prices are set by government action.
B) consumers alone set the price.
C) producers alone set the price.
D) prices are set by the interaction of supply and demand.
Answer: D
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Floating exchange rates are market determined, that is, supply and demand for foreign exchange sets the rate in the foreign exchange market
Indicate whether the statement is true or false
Using a marginal revenue (MR)/marginal cost (MC) line graph, what is the point at which a monopoly will maximize its profits?
a. MR = MC b. MR > MC c. MC > MR d. MC < MR
Suppose $1 Canadian is worth 13 Mexican pesos, then a bike that costs $2,000 Canadian should sell for 30,000 pesos in Mexico
a. True b. False Indicate whether the statement is true or false
If labor-intensive textile products could be produced more cheaply in low-wage countries than in the United States, the United States would gain if it
a. levied a tariff on the goods produced by the cheap foreign labor. b. subsidized the domestic textile industry so it could compete in international markets. c. used its resources to produce other items while importing textiles from foreigners. d. levied a tax on the domestic textile products to penalize the industry for inefficiency.