Allocative efficiency is achieved when
A) goods and services are fairly distributed among consumers in an economy.
B) firms produce the goods and services that consumers value most.
C) firms produce goods and services at the lowest cost.
D) there are no shortages or surpluses in the market.
Answer: B
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If the dependent variable Y is directly related to the independent variable X, this means that changes in X cause changes in Y
a. True b. False
Aggregate demand represents the _____ at alternative price levels
a. total spending in the economy b. total saving in the economy c. total money demand in the economy d. total output of the economy e. total money supply in the economy
Included in M2 are
A. credit cards. B. bank capital. C. bank loans. D. demand deposits.
Which of the following portions of the national debt impose a net interest burden on the federal government?
a. treasury bonds held by government agencies b. treasury bonds held by private investors c. treasury bonds held by the Federal Reserve system d. treasury bonds held in the Social Security Trust Fund