In any given market, prices are determined by
A. supply and demand.
B. transactions costs.
C. specialization of labor.
D. comparative advantage.
Answer: A
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In a simple macroeconomic model, replacing the assumption of exogenous investment with the accelerator theory of investment ________ the effect on equilibrium GDP of fiscal policy changes, and ________ the effect on equilibrium GDP of changes in
autonomous consumption. A) increases, increases B) increases, dampens C) dampens, increases D) dampens, dampens
Bindy, an 18-year-old high school graduate, and Luciana, a 40-year-old college graduate, just purchased identical hot new sports cars. Acme Insurance charges a higher rate to insure Bindy than Luciana. This practice is an example of:
A) collusion. B) price discrimination. C) two-part tariff. D) bundling. E) none of the above
The optimal air quality would be determined where the marginal social cost of improving air quality is equal to the marginal social benefit from cleaner air
a. True b. False
Union membership in the United States has fallen compared to what it was in the 1950s
a. True b. False Indicate whether the statement is true or false