What is an important advantage of a free market?
a) it does not change unless the government directs it
b) it offers a wide variaty of goods and services
c) it is easy to regulate
d) it protects the less fortunate
Answer: b) it offers a wide variaty of goods and services
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What is the source of the demand for loanable funds in the open-economy macroeconomic model?
A series of ascending indifference curves is called
a. a demand curve b. a budget constraint c. an indifference map d. marginal-utility-to-price ratio curves e. consumer surplus
Externalities arise when: a. the benefits of a transaction between producers and consumers are enjoyed by only the consumers. b. the benefits of a transaction between producers and consumers are enjoyed by only the producers. c. a transaction negatively impacts people who are not directly involved in the transaction
d. a transaction occurs without the government's approval.
Cartel members may agree to jointly limit their output in order to ______.
a. lower prices for consumers b. increase their tie-in sales c. support the profit-maximizing price d. comply with strong antitrust laws