A market economy is an economy where:
a. economic decisions are passed down from government authority and resources are owned by the government.
b. economic decisions are economic decisions are centralized, resources are owned by private individuals, and businesses supply goods and services based on demand.
c. economic decisions are decentralized, resources are owned by private individuals, and businesses supply goods and services based on demand.
d. economic decisions are passed down from government authority and resources are owned by individuals.
c. economic decisions are decentralized, resources are owned by private individuals, and businesses supply goods and services based on demand.
A market economy is an economy where economic decisions are decentralized, resources are owned by private individuals, and businesses supply goods and services based on demand.
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A decrease in the price of a good would
a. shift the supply curve for the good to the left. b. give producers an incentive to produce more to keep profits from falling. c. increase the quantity demanded of the good. d. increase the supply of the good.
If a hurricane were to wipe out the majority of the eastern seaboard in the United States:
A. neither the short-run nor long-run aggregate supply curves would be affected. B. only the long-run aggregate supply curve would shift left. C. only the short-run aggregate supply curve would shift left. D. the long-run and short-run aggregate supply curves would both shift left.
The real rate of interest is
A. the average rate of interest over the last 20 years. B. the nominal interest rate minus the anticipated rate of inflation. C. the interest rate received by the lender minus the handling charges of the loan. D. the interest rate actually paid explicitly by the borrower.
If ________, net exports are zero
A) imports equal transfer payments B) imports exceed exports C) exports exceed transfer payment D) exports equal imports