Which of the following contributes to the efficiency of markets?
A) Markets promote competition and voluntary exchange.
B) Markets are able to bring about an equitable distribution of goods and services.
C) Governments play an active role in the day-to-day operations of markets.
D) Markets promote equal standards of living.
A
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Quantity demanded means
A) demand. B) the amount of a good customers need. C) the amount of a good customers ultimately desire. D) the amount of a good customers plan to purchase at a given price. E) the amount of a good suppliers plan to sell.
In the Cambridge version of the Quantity Theory of Money, the amount of real money balances __________ after an increase in the nominal money supply
A) increases B) decreases C) is unchanged D) Cannot be determined from the information given.
In the market for fossil-fuel-based electric power,
a. the MEC is horizontal b. the competitive equilibrium is efficient c. the MSC is exactly equal to the MPC d. none of the above
Wage and price stickiness
A. give rise to a vertical long-run aggregate supply curve. B. give rise to a vertical short-run aggregate supply curve. C. creates a surplus or a shortage of real GDP. D. prevents the economy from producing its potential level of real GDP.