The market system provides a way
a. to allow specialization and exchange to work in tandem.
b. to improve the well-being of mankind.
c. to harness self-interest.
d. to allocate goods and services.
e. All of the above are correct.
e
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Why do countries who are members of a currency union have difficulty in recovering from a recession?
What will be an ideal response?
Using the data in the above table, if the private sector runs a surplus of $250 billion, imports will equal $1,000 billion if
A) government expenditure equals -$750 billion. B) investment equals -$1000 billion. C) government expenditure equals -$1000 billion. D) the government sector runs a deficit of $750 billion.
Which of the following would most likely increase the price of chicken, a normal good?
a. a reduction in the price of grains used to produce chicken feed b. a reduction in the price of beef, a substitute for chicken c. unusually hot weather that kills millions of chickens before they are ready for market d. a decrease in consumer income
In the long run, a profit-maximizing monopolist
a. earns zero economic profit. b. produces the same amount as a perfectly competitive industry. c. receives a higher price for his output than a perfectly competitive firm. d. produces at the output level that minimizes his long-run average total cost.