Markets fail to allocate resources efficiently when
a. prices fluctuate.
b. people who have property rights abuse their privileges.
c. property rights are poorly enforced or not well established.
d. the government refuses to intervene in private markets.
C
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Suppose that the price of bread rises. This rise could be the result of
A) a decrease in the supply of bread. B) an increase in the supply of bread. C) a decrease in the demand for bread. D) Both answers A and C are correct. E) Both answers B and C are correct.
All of the following are possible outcomes of a financial crisis EXCEPT
A) bank failings and disintermediation. B) decreases in investment. C) a recession. D) a sure competitive advantage accompanied by a comparative advantage. E) depreciation or devaluation of a currency.
Gold is an example of
A) commodity money. B) fiat money. C) barter money. D) M1.
The path of consumption over a lifetime is likely to be ________ the path of income.
A. completely unrelated to B. much less stable than C. about the same as D. much more stable than