In a free market economy, the decisions of buyers and sellers are:
A. coordinated by the government.
B. random.
C. motivated by custom and tradition.
D. guided by prices.
Answer: D
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In the loanable funds market,
a. savers are suppliers of loanable funds, and borrowers are demanders of loanable funds b. the supply curve slopes downward, and the demand curve slopes upward c. the supply curve reflects the negative relation between the market rate of interest and the quantity of savings d. households play the role of financial intermediaries e. banks pay a higher interest rate on consumer savings than they could earn by lending these funds out
Economic growth is most likely to solve the problems of
a. environmental pollution. b. world poverty. c. emotional stress. d. social alienation.
Supply-side economics concerns itself with the interaction between demand and supply, the price level, and real GDP.
Answer the following statement true (T) or false (F)
In economics, people make decisions regarding consumption based on comparing
A) additional units of satisfaction with additional costs. B) average satisfaction with additional costs. C) average satisfaction with average costs. D) additional units of satisfaction with average costs.