Which of the following is a possible result of price confusion?
A. People are less able to take actions that mitigate the impact of monetary policy.
B. Sellers will face pressure to provide more accurate pricing information.
C. The price system becomes a less effective way to coordinate economic action.
D. The signals that prices send become clearer and more necessary.
Ans: C. The price system becomes a less effective way to coordinate economic action.
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In practice, it is usual to assume that, in explaining the impact of a change in interest rates ________
A) the substitution effects outweigh the income effects B) the income effect outweighs the substitution effect C) the income and substitution effects cancel out with one another D) the income effect increases the severity of the substitution effect
Assume the central bank decides to raise the discount rate. Where and how should you begin your analysis when analyzing the chain reaction of economic interactions?
a. Start the analysis in the real goods market with aggregate demand shifting to the left. b. Start the analysis in the real goods market with aggregate demand shifting to the right. c. Start the analysis in the real credit market with demand for real credit shifting to the left. d. Start the analysis in the real credit market with demand for real credit shifting to the right. e. Start the analysis in the real credit market with supply of real credit shifting to the left.
Good customer service leads to customer satisfaction and loyalty. What are the operational targets your logistics system needs to provide?
a. Product availability b. Timely delivery c. Transparency d. Protection against disruption e. All of the above
In the United States, regulation increased steadily in the early 1970s in the areas ofÂ
A. health, safety, and the environment. B. transportation. C. telecommunications. D. food and drugs.