If the market supply curve does not capture all of the costs to society of producing an additional unit of good, then:
A. the market will not be in equilibrium.
B. the allocation of resources will be efficient.
C. the market equilibrium will be socially optimal.
D. the market equilibrium will not be efficient.
Answer: D
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Relations between rich and poor countries is most important in
a. Marx's view of capitalist development b.dualism c. dependency theory d. Rostow's stages of development e. none of the above
The unregulated portion of the economy involving goods and services that are produced and exchanged without monetary transactions is known as
a. the underground economy. b. the secret economy. c. the capital consumption. d. transfer payments.
The exchange rate of the dollar relative to other currencies is determined by market forces. When equilibrium is present in the exchange rate market,
What will be an ideal response?
Use the following general linear demand relation:Qd = 680 - 9P + 0.006M - 4PR where M is income and PR is the price of a related good, R. If M = $15,000 and PR = $20 and the supply function is Qs = 30 + 3P, equilibrium price and quantity are, respectively,
A. P = $6 and Q = 38. B. P = $40 and Q = 250. C. P = $12 and Q = 200. D. P = $50 and Q = 170. E. P = $55 and Q = 195.