The signals in markets are determined
A. for all goods by the government through the use of price controls.
B. by nonprice rationing devices.
C. by supply and demand.
D. in an unfair manner that ends up hurting the poor.
Answer: C
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Which of the following statements is true?
A) Cultural and geographical conditions of a nation can be considered proximate causes of prosperity. B) Stock of human capital and the geography of a nation can be considered fundamental causes of prosperity. C) Stock of human capital and physical capital available to a nation can be considered proximate causes of prosperity. D) Stock of human capital and the geography of a nation can be considered proximate causes of prosperity.
According to your textbook, expansionary monetary policy
A) encourages entrepreneurs to invest in projects that only appear profitable. B) creates a temporary "boom," or economic expansion. C) will ultimately be followed by a "bust," as entrepreneurs learn of their forecasting errors. D) tends to generate all of the above.
A U.S. bakery buys wheat from Canada and pays for it with US dollars. This transaction
a. increases Canadian net exports, and increases U.S. net capital outflow. b. increases Canadian net exports, and decreases U.S. net capital outflow. c. decreases Canadian net exports, and increases U.S. net capital outflow. d. decreases Canadian net exports, and decreases U.S. net capital outflow.
3 questions that every economy faces
What will be an ideal response?