A "pure exchange economy" is one in which producers and consumers are evenly divided.
Answer the following statement true (T) or false (F)
False
Rationale: A pure exchange economy is one in which there is no production, and consumers are endowed with different bundles of goods which they trade for what they want.
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In economics, "demand" refers to
A) the intensity of desire for a good. B) the amount of a good people need rather than the amount they want. C) the satisfaction a good will provide a person. D) how much of a good people will buy at any price during a given time period.
The management of a rental building faces a rent control situation, where it cannot charge more than $400 a month in rent on the apartment. The management knows that the apartments are high in demand and renters would be willing to be $1000 per month for them. The management will
a. Do nothing-it cannot violate the regulation b. Offer a bundle of both the apartment and furniture together for $1000 c. Offer the controlled rent but force the tenants to rent furniture from the management d. Both B&C
A firm is considering the purchase of a piece of equipment that will add $200 per year to the firm's revenue forever. If the interest rate is 10 percent, the firm will purchase the equipment so long as it costs less than
a. $1,000 b. $2,000 c. $4,000 d. $6,000 e. $8,000
Rational expectations theory would imply that the graphical relationship between unemployment and inflation indicated by the Phillips curve is ____ in the short-run
a. vertical b. positively sloped c. negatively sloped d. horizontal