Explain why contracts are beneficial to markets.

What will be an ideal response?


Contracts specify the terms of trade, facilitating exchange between strangers.

Economics

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If Fredonia has a closed economy, it ________ with other countries.

A. does not negotiate B. trades C. does not trade D. prevents it's citizens from traveling to other countries but trades

Economics

If aggregate demand is stable and there is economic growth, the economy will experience

A) secular depreciation. B) secular decline. C) secular deflation. D) secular degeneration.

Economics

Refer to the table below. If the discount rate is 6 percent and the cost of the investment is $45,000, what is the net present value of the investment?


The above table shows the future operating profits from an investment. The future operating profits are earned at the end of each of the respective years.

A) -$1,074.48
B) $1,100.56
C) $43,925.52
D) -$44,852.36

Economics

A temporary support for jobless workers introduced as a provision of the Social Security Act in 1935 is

a. the Civilian Conservation Corps b. the Job Corps c. employment supplements d. supplemental security e. unemployment insurance

Economics