Which of the following is a useful metaphor for the role of prices in markets?

A) Cardiovascular system
B) Digestive system
C) Vision system
D) Nervous system


Answer: D) Nervous system

Economics

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If you are informed copper prices will fall in the next few months, you should ________ copper futures

But if that information becomes common knowledge, others will do the same thing, and the price of copper futures will ________. A) buy; rise B) sell; rise C) buy; fall D) sell; fall

Economics

During the recession of 2007-2009, the U.S. economy was experiencing a decrease in home prices and consumer wealth, a credit crisis in the financial markets, and declining consumer and business confidence

What components of aggregate demand were affected and what was the impact on real output? What were the policy options?

Economics

When goods are subject to market failure, all of the following are possible solutions to the market failure except:

A. privatize the good. B. have government either regulate the market or provide the good. C. set a very specific consumer quota on consumption. D. change social norms.

Economics

The housing market boom raised people's perceived wealth.

Answer the following statement true (T) or false (F)

Economics