Which of the following statements is true of equilibrium?
A) Economic agents have an incentive to divert from equilibrium.
B) Each economic agent can reach equilibrium irrespective of the actions of others.
C) In equilibrium, the opportunity cost of the choices made by each economic agent is zero.
D) In equilibrium, all economic agents are choosing the best feasible option simultaneously.
D
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One common definition of economics is the study of
A. how scarcity increases opportunities to meet ends. B. how markets overcome scarcity. C. one goal and three tasks. D. how to use limited means to meet unlimited wants. E. wants versus needs.
In a perfectly competitive market, situations of surplus or shortage of a good:
A) exist till the government or any ruling authority intervenes. B) are permanent phenomena. C) can exist simultaneously. D) are self-corrected due to the competitive nature of the market.
The process of transforming otherwise illiquid financial assets into marketable capital market instruments is known as
A) securitization. B) internationalization. C) arbitrage. D) program trading.
How can the difference between the current unemployment rate and the natural rate of unemployment help explain changes in inflation?
What will be an ideal response?