In a market economy, income is primarily determined by
a. the productivity of household resources
b. the level of transfer payments
c. government monetary and fiscal policy
d. the geographic distribution of resources
e. the amount of financial assets owned by households
A
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If a price floor on coffee is set above the market-clearing price, then
A) the quantity of coffee demanded will decrease. B) the quantity of coffee supplied will increase. C) the quantity demanded for coffee will increase. D) Both A and B will occur E) none of the above will occur.
Suppose that the price of capital falls. Does this necessarily imply that the demand for laborwill fall? Explain
What will be an ideal response?
The variation in the rate of return one can expect from ownership of stocks will generally be smaller
A) if a diverse set of stocks is held over a lengthy period of time, such as 30 or 40 years. B) if all of the funds are invested in a specific sector of the economy such as health care. C) if all of the funds are invested in a single stock. D) if the funds are invested for a relatively short period of time.
What information is provided by a demand curve? What variables are measured along the axes of the graph?
What will be an ideal response?