The major advantage of a market economy is that
a. it maximizes the need for resource-flow data
b. prices convey most of the information necessary to coordinate economic activity among firms
c. data are aimed at central planners
d. prices are essentially meaningless
e. All of the answers are correct
B
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The equation of exchange becomes the same as the quantity theory of money by assuming that the velocity of circulation ________ when the quantity of money changes and potential GDP ________ when the quantity of money changes
A) changes; changes B) changes; does not change C) does not change; changes D) does not change; does not change
We measure economic growth by the percentage change in real GDP. In general terms outline the course of the U.S. output growth rate in recent decades, both in terms of its trend and its changes around trend
Pay particular attention to the stability of the growth rate.
A reliable indicator of a healthy economy is a stable currency
a. True b. False
A tax on the buyers of cameras encourages
a. sellers to supply a smaller quantity at every price. b. buyers to demand a smaller quantity at every price. c. sellers to supply a larger quantity at every price. d. Both a) and b) are correct.