The signals that guide the allocation of resources in a market economy are
a. surpluses and shortages.
b. quantities.
c. government policies.
d. prices.
d
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Use the figure below to answer the following question.
What area represents society's total surplus after the government imposes the excise tax on the market?
A. triangle $1c$9 plus triangle $21a$13 B. triangle abc C. square $13ac$9 plus triangle abc D. triangle $1c$9 plus triangle $21a$13 plus rectangle $13ac$9
Most U.S. currency held outside the U.S. banking system is held by foreigners
Indicate whether the statement is true or false
In 2008, several banks had a:
A. solvency problem, and the Fed kept them all from going bankrupt. B. confidence problem, and would not lend enough to keep from going bankrupt. C. solvency problem, and eventually went bankrupt as a result. D. reserve problem, and did not have enough funds on hand to lend to keep from going bankrupt.
Local electric or gas utility companies mostly operate in which market structure?
A. Monopolistic competition B. Pure competition C. Pure monopoly D. Oligopoly