In a market economy, buyers and sellers communicate their intentions to one another through:
A. government planners.
B. negotiations overseen by government agencies.
C. elected officials.
D. prices.
Answer: D
You might also like to view...
The circular flow diagram implies that if accounting is done correctly, ________
A) the flow of income must exceed the implied value of the factors of production B) the implied value of the factors of production must exceed the flow of income C) the flow of expenditure must equal the income of the households making those expenditures D) the flow of expenditure must exceed the income of the households making those expenditures
"Under floating rates, the economy is more vulnerable to shocks coming from the domestic money market." Discuss
What will be an ideal response?
A multi-plant firm has three plants and, at its current production levels, the marginal cost of production at each of the three plants is $2. If the firm is perfectly competitive and the market price of its product is $6, which of the following is true?
A) The firm should decrease output at each of the plants to maximize profit. B) The firm is producing the profit-maximizing total output. C) The firm should exactly triple output in each of the plants to maximize profit. D) The firm should increase output at each of the plants to maximize profit.
All of the following are examples of entry barriers, except
a. Government protection through patents or licensing requirements b. Strong brands c. Low capital requirements for entry d. Lower costs driven by economies of scale