Deflation is a situation in which the:
A. prices of most goods and services are rising over time.
B. quantity of goods and services produced is increasing over time.
C. prices of most goods and services are falling over time.
D. quantity of goods and services produced is decreasing over time.
Answer: C
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According to the textbook, which of the following methods for coordinating the supplies and demands for scarce goods tends to work best to enhance the freedom and power of people who want the goods?
A) A lottery B) Equal shares for all C) First come, first served D) Highest money bid E) Might makes right
If a firm facing a perfectly elastic demand curve raises its price,
a. it will still sell exactly the same amount of output as it did at the lower price b. it will lose some, but not all, of its sales c. its sales will decrease to zero d. its sales will increase e. it is impossible to predict what will happen to its sales
The total amount of income in a society is independent of how income is distributed.
Answer the following statement true (T) or false (F)
The opportunity cost of producing a good is the additional labor cost incurred to produce an extra unit of the good.
Answer the following statement true (T) or false (F)