The adjustment of ________ is the rationing mechanism in market economies.
A. supply
B. demand
C. price
D. quantity
Answer: C
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The "policy ineffectiveness proposition" of the new classical attack on policy activism is based on the idea that
A) people will anticipate policy changes particularly those based on a feedback rule. B) people will anticipate the effects of policy changes and act to offset these effects. C) Both A and B are correct. D) None of the above is correct.
If Isabella buys two goods and the prices of both goods decrease by 50%
A) the budget constraint will be unchanged. B) the slope of the budget constraint will increase. C) the slope of the budget constraint will decrease. D) the budget constraint will shift outward in a parallel fashion.
Even if entry is easy, oligopolists possess sufficient market power so that profits are assured in the long run
a. True b. False Indicate whether the statement is true or false
Opportunistic behavior on the part of the employer is possible because:
a. contracts are often incomplete and leave room for implicit understandings between the two parties. b. employees often reduce their effort level if they are important to the company. c. it is difficult to monitor all employees and their performances. d. good quality work can be easily measured.