What role do well-functioning financial markets play in a market economy?
What will be an ideal response?
They allocate saved funds to the best use of these funds.
You might also like to view...
What are the costs of inflation? Briefly explain each
What will be an ideal response?
Because efficiency wage theory deals with the consequences of a change in a firm's ________ wage, if all wages were indexed to nominal aggregate demand the theory would be ________
A) absolute, even more appropriate B) absolute, rendered inappropriate C) relative, even more appropriate D) relative, rendered inappropriate
The implementation of the assembly line is an example how
A) changes in the organization of production improve productivity. B) neutral technical change improves productivity. C) non-neutral technical change can decrease productivity. D) labor saving technical change increases economy-wide unemployment.
In the text, the key question in the "economics of a business" is
A) whether the need to grow revenues is being met. B) should the firm be in the business in which it is operating. C) whether the firm faces rising labor costs. D) can the firm affect its market share.