Explain why the arrangement in the use of resources in a market system is not random given the decentralized nature of the system
Please provide the best answer for the statement.
Private property encourages mutual accommodation in a market system. People who own resources seek to obtain the best use of those resources. In doing so, they make the best use of those resources and thus create arrangements of those resources that are used for the production of goods and services that people want.
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A bond that is generally agreed to have higher default risk will experience all of the following EXCEPT:
A) declining demand B) declining supply C) higher yield D) lower price
In differentiating between the short- and long-run elasticities, when economists talk about short-run elasticities,
a. b and c. b. there is no need to mention short versus long run. c. the only issues are price and quantity. d. short-run elasticities are usually higher. e. short-run elasticities are usually lower.
A heterodox model would not call for freezing wages and prices, but an orthodox one would
Indicate whether the statement is true or false
The primary difference in certificates of deposit (CDs) that are equal to or less than $100,000 and those over $100,000 (other than the amount) is:
A. CDs equal to or less than $100,000 are issued for only six months or less. B. a bank does not have to include CDs equal to or less than $100,000 in its liabilities. C. CDs greater than $100,000 are issued for only six months or less. D. CDs greater than $100,000 are negotiable and therefore can be bought and sold.