Price is the coordinating mechanism in a planned economy.
Answer the following statement true (T) or false (F)
False
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Refer to Figure 15-17. An economics professor argues: "I think the course should be priced so as to achieve economic efficiency." Which price should this faculty member favor?
A) $0 B) $40 C) $88 D) $150
What has happened to resource prices in the twentieth century and what do they reveal about resource scarcity?
What will be an ideal response?
The interest rate in the federal funds market:
A. is determined by the imposition of price controls imposed by the Fed. B. rises when the quantity of funds demanded by banks seeking additional reserves exceeds the quantity supplied by banks with excess reserves. C. will fall if the Fed sells bonds and, thereby, reduces the reserves available to banks. D. is an interest rate that is largely unaffected by the policies of the Fed.
"All monopolies operate with positive economic profits." Do you agree or disagree? Why?
What will be an ideal response?