In a market system, the answer to the "for whom to produce" economic question is that goods are allocated to those with the willingness and ability to pay, as expressed through market demand
Indicate whether the statement is true or false
true
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Concerning economic growth, which of the following is true?
a. A favorable institutional environment will tend to attract more investment in human and physical capital. b. Poor nations grow slowly because they do not have access to modern technology c. Human and physical capital investments are largely irrelevant to economic growth. d. Nations achieve high rates of economic growth primarily because of their natural resource endowments.
Suppose a little girl likes peanut butter and jelly sandwiches with exactly 2T of jelly and 1T of peanut butter. Suppose further that her mom agrees to make sandwiches to those exact specifications and the price of peanut butter is $.25/T and the price of jelly is $.10/T. If she has $1.80 to spend on peanut butter and jelly ingredients (ignore the bread) in a week, how many sandwiches will she
make? a. 1 b. 2 c. 4 d. 8
If the Fed's monetary policy causes a substantial decrease in interest rates, what is the most likely impact on velocity?
a. It will decrease. b. It will increase. c. It will remain constant. d. Velocity is unrelated to interest rates.
The Maastricht Treaty of 1991 provided for all of the following, EXCEPT:
A) an enlargement process to include more European nations. B) a ban on nations opting out of a currency union. C) a rename of the EC to the European Union. D) a notion of EU "citizenship."