Under a laissez-faire system,
A. government coordinates with firms to determine output and prices for goods and services.
B. input-output analysis is used by planning agencies to determine output levels.
C. the demand and supply process determines output and prices of goods and services.
D. firms coordinate with each other to determine output and price levels for goods and services.
Answer: C
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According to the circular flow of income and output, which of the following is not true?
A. Total income and total output must be equal. B. Goods and services flow in one direction and money payments flow in the other direction. C. In every economic? transaction, the seller receives exactly the same amount that the buyer spends. D. ?Goods, services and money all flow in one direction since money pays for the goods and services.
Of the 10% of the U.S. work force with advanced (Master's, other professional, and Ph.D.) degrees, the share of those who are foreign born is:
a. more than 50%. b. between 16 and 40%. c. less than 15%. d. less than 5%.
Refer to the information provided in Figure 2.4 below to answer the question(s) that follow.
Figure 2.4Refer to Figure 2.4. The economy moves from Point E to Point B. This could be explained by
A. a change in society's preferences for hybrid cars versus motorcycles. B. an increase in economic growth. C. an increase in unemployment. D. a reduction in unemployment.
Refer to the data. In determining real GDP, the nominal GDP for:
Assume an economy that makes only one product and that year 3 is the base year. Output and price data for a five-year period are as follows. Answer the question on the basis of these data.
A. each year must be multiplied by the relevant price index.
B. years 1 and 2 must be inflated.
C. years 4 and 5 must be inflated.
D. years 1 and 2 must be deflated.