Under a perfectly competitive price system:
a. an equitable allocation of the available resources will always result.
b. there is no opportunity for individuals to trade amongst themselves.
c. there is no reason to expect that voluntary trading will result in an equitable allocation of the available resources.
d. none of the above.
c
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Because of the law of diminishing returns, _____
a. economic growth rate begins to diminish as capital deepening increases b. GDP per capita decreases as capital per unit of labor decreases c. the average cost of production decreases as output in an economy increases d. the marginal cost of production decreases as output in an economy increases
Describe some of the steps used to combat inflation. What are their side effects?
What will be an ideal response?
Which one of the following factors will most likely cause an increase in aggregate demand?
A. An increase in net exports. B. An increase in the real interest rate. C. A decrease in net exports due to falling incomes abroad. D. A technological development that decreases the cost of producing computer chips.
An input is indivisible if:
A. it cannot be increased to produce a larger quantity of output. B. it cannot be used as a substitute for other inputs in the production process. C. it is sufficiently inexpensive to purchase that firms will want to buy as much as they can. D. it cannot be scaled down to produce a smaller quantity of output.