In an expanding economy,
a. prices rise faster than costs.
b. costs rise faster than prices.
c. profit margins decrease.
d. interest rates fall.
a. prices rise faster than costs.
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Free trade refers to trade between countries without government restrictions
Indicate whether the statement is true or false
In insurance markets, moral hazard creates economic inefficiency because:
A) insurance companies are price setters rather than price takers. B) insurance products are not homogenous goods. C) there are many buyers but only a few sellers. D) insured individuals do not correctly perceive the costs or benefits of their actions.
Which of the following is NOT a voluntary exchange?
A) Tom's car is stolen from in front of his house. B) Marie buys groceries. C) Scott pays $10,000 for tuition and fees this semester. D) Emily buys a $1,000 plane ticket to fly from New York to Dallas on short notice.
A decrease in the price of a good will cause a movement along the demand schedule to a higher quantity demanded
a. True b. False Indicate whether the statement is true or false