Which is the correct statement about the relationship between government and the market?
A. Government should not intervene on any party's behalf.
B. Government should intervene on the producers' behalf.
C. Government should intervene on the consumers' behalf.
D. Government often plays a role in disciplining the market process.
Answer: D
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What will be an ideal response?
What effect does the following transaction have on the U.S. balance of payments?(Choose the proper debit and credit entries.) Colgate Inc (U.S.) receives profits from its foreign affiliates. Payment is made in U.S. dollars
a. Debit the U.S. financial account; credit the U.S. current account. b. Credit the U.S. financial account; debit the U.S. current account. c. Debit the U.S. financial account; credit the U.S. financial account. d. Credit the U.S. financial account; debit errors and omissions.
The fact that monopolistically competitive firms charge a price that exceeds marginal cost is responsible for the
a. business-stealing externality that is observed in monopolistically competitive markets. b. product-variety externality that is observed in monopolistically competitive markets. c. inefficiencies of the long-term losses earned by monopolistically competitive firms. d. persistence of positive profits into the long run for monopolistically competitive firms.
The nominal interest rate equals the:
What will be an ideal response?