The term market mechanism refers to
A. The use of market prices and sales to determine resource allocation.
B. Supply curves but not demand curves.
C. The establishment of a ceiling price in a market.
D. Government laws and regulations concerning how the market should operate.
Answer: A
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If the cyclical rate of employment equals -1 percent and the actual rate of unemployment equals 8 percent, then the natural rate of unemployment must equal:
A. 7 percent. B. 12.5 percent. C. 9 percent. D. -7 percent.
Your authors say economists tend to
A) think outside the box. B) think outside the bun. C) think outside the mind. D) think outside the theory. E) think outside the facts.
"Remittances" occur when:
A. two countries send immigrants to each other in approximately equal numbers. B. physical capital flows into a country that has lost labor due to migration. C. immigrants send financial payments back to family in their country of origin. D. migrants return to their home country.
Starting from long-run equilibrium, a decrease in autonomous investment results in ________ output in the short run and ________ output in the long run.
A. lower; potential B. higher; higher C. higher; potential D. lower; higher