When economic profits exist in the market for a particular product, this is a signal to producers that
A. Consumers would like more scarce resources devoted to the production of this product.
B. The best mix of goods and services is being produced with society's scarce resources.
C. The market is oversupplied with this product.
D. Price is at the minimum of the ATC curve.
Answer: A
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In which of the following countries are citizens required to vote?
a. Greece b. Canada c. United States d. France
The invisible hand principle indicates that competitive markets can help promote the efficient use of resources
a. only if buyers and sellers really care, personally, about economic efficiency. b. even if business firms fail to produce goods efficiently. c. even when market participants care only about their own self interests rather than about the overall efficiency of resource use. d. if, and only if, businesses recognize their social obligation to keep costs low and use resources wisely.
An economy with an expansionary gap will, in the absence of stabilization policy, eventually experience a(n) ________ in the inflation rate, leading to a(n) ________ in output.
A. decrease; increase B. increase; increase C. decrease; decrease D. increase; decrease
The demand for money to cover unexpected expenditures and to meet emergencies is known as
A. the terminal demand for money. B. the asset demand for money. C. the precautionary demand for money. D. the transactions demand for money.