Which of the following is a situation that makes the market behave inefficiently?
a) when consumers do not have enough information to make good choices
b) when the producers have the power to find out exactly what to produce
c) when both consumers and producers are fully informed about a product
d) when the market is in perfect competition and prices are high
Ans: a) when consumers do not have enough information to make good choices
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Adam Smith coined the term "invisible hand" to describe the process by which the actions of independent, self-interested buyers and sellers will:
A. always lead to the most efficient allocation of resources. B. often lead to increasing inequality. C. always lead an economy to ruin. D. often lead to the most efficient allocation of resources.
The coefficient of determination will range between what values?
A) 0 and 1 B) -1 and +1 C) -3 and +3 D) none of the above
The president's budget is submitted to Congress fifteen days after Congress convenes in _____
a. January b. February c. September d. October
If taxes are a function of income, then the AE function is
A. downward sloping. B. steeper than if taxes are a lump-sum amount. C. vertical. D. flatter than if taxes are a lump-sum amount.