In markets, prices move toward equilibrium because of
a. government regulations placed on market participants.
b. buyers' ability to affect market outcomes.
c. the actions of buyers and sellers.
d. increased competition among sellers.
Answer: c. the actions of buyers and sellers.
You might also like to view...
When mismatch unemployment characterizes an economy
A) monetary and fiscal policies to raise AD are the appropriate government action. B) only monetary policy will be effective. C) monetary and fiscal policies to raise AD are not the appropriate government action. D) only general (not specific) fiscal policy will be effective.
A rising GDP causes __________ the money demand curve
A) downward movement along B) upward movement along C) a rightward shift of D) a leftward shift of
For an individual's supply curve of labor to be upward sloping:
a. the substitution effect must be greater than the income effect. b. the substitution effect must be equal to the income effect. c. the substitution effect must be less than the income effect. d. is an impossibility.
In Figure 30.1, the labor supply could shift from S1 to S2 due to all of the following except
A. A decrease in the attraction of leisure activities. B. An increase in the number of workers willing to work in this labor market. C. Fewer workers preferring to work in this labor market. D. A decrease in the payroll tax on workers.