The economic system that answers the What, How and For Whom questions using prices determined by the interaction of supply and demand is a:
A. market economy.
B. command economy
C. soviet economy.
D. traditional economy.
Answer: A
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The U.S.'s high trade deficit must be balanced by:
A. high net capital outflows. B. low net capital outflows. C. net capital inflows. D. None of these statements is true.
The approach to understanding the determination of real GDP and the price level that emphasizes flexible wages and prices and competitive markets is
A. the Keynesian model. B. Adam Smith's Law. C. Murphy's Law. D. the classical model.
The mathematical representation of the technological relationship between inputs and national output is known as the
A. input-output table. B. aggregate supply function. C. production possibilities frontier. D. aggregate production function.
Which of the following represents dead capital?
A) capital that lacks clear title of ownership B) capital that has worn out over time C) capital that has become obsolete D) none of the above