What are the conditions that an exchange must satisfy in order to make two individuals participate in it?
Two individuals or parties will enter into a deal to exchange economic goods only when the result makes both of them better-off. The deal must be voluntary on both sides and must benefit both parties involved.
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All of the following are possible outcomes of a banking crisis EXCEPT
A) depositors, but not banks, may lose all or a portion of their assets. B) a recession due to decreases in consumption by households. C) decreases in lending practices by banks. D) decreases in investment. E) a contagion effect of the crisis from vulnerable banks to financial institutions on sound basis.
China has the largest GDP in the world
a. True b. False Indicate whether the statement is true or false
If the savings rate increases, then the optimum level of capital per worker falls
a. true b. false
When price and marginal cost are equal for a perfectly competitive firm, the firm is
A. maximizing economic profit. B. earning negative economic profit. C. maximizing total revenue. D. minimizing average total cost.