When a free market for a good reaches equilibrium, anyone who is willing and able to pay the market price can buy the good
a. True
b. False
Indicate whether the statement is true or false
True
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List three ways government can reduce depletion of an endangered resource. Which of these ways requires the least amount of management, monitoring, and bureaucracy?
What will be an ideal response?
What three assumptions must hold for the allocation of resources among firms to be efficient?
What will be an ideal response?
The change in consumption divided by a change in income is called the:
a. consumption function. b. marginal propensity to consume. c. marginal propensity to spend. d. spending function. e. changing propensity to consume.
A good would not be very suitable to use as money if it
a. is portable because it is needed as a store of value b. is divisible because each unit of money should have the same value c. is scarce because we need more money as the economy grows d. is commonly accepted as a medium of exchange because everyone will hoard it e. lacks uniformity because the money supply would be of varying quality and people will hoard the preferred money and circulate only the less preferred