An economic system is
A) the universe of all resources.
B) a way to create new resources.
C) a mechanism to allocate scarce resources.
D) an organization that generates profits.
Answer: C
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Refer to Figure 29-1. Currency speculators believe that the value of the euro will increase relative to the dollar. Assuming all else remains constant, how would this be represented?
A) Supply would decrease, demand would increase and the economy moves from A to D to C. B) Supply would increase, demand would increase and the economy moves from D to A to B. C) Supply would decrease, demand would decrease and the economy moves from B to C to D. D) Supply would increase, demand would decrease and the economy moves from C to B to A.
Using a change in supply and/or demand, explain the following phenomena:
a. All else constant, gasoline prices are higher in summer than winter months. b. At the same time that the quality of personal computers has been increasing, the price of personal computers has been falling.
Which of the following is explained by the price elasticity of demand for a product?
a. The effect of changes in price on the supply of the product b. The effect of changes in quantity on the supply of the product c. The effect of changes in quantity on the price of the product d. The effect of changes in price on the quantity demanded of the product e. The effect of changes in price on the quantity supplied of the product
Business should take government actions as
A) given. B) something that must be recognized in decision-making. C) a passive factor with little impact. D) enhancing efficiency.