There is always a single market coordination mechanism in economic models.
Answer the following statement true (T) or false (F)
False
There are hundreds of coordination mechanisms, and each one coordinates wants in a different way. The debate is about which mechanism will best solve the problem at hand.
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Why do investors hedge using futures contracts?
A) they are seeking to increase liquidity B) they are willing to pay for a reduction in risk C) in order to provide a counterparty to speculators D) they are more flexible than forward contracts
All other things equal, GDP will rise if:
A. imports rise. B. exports fall. C. durable goods consumption rises. D. military spending falls.
When the percentage change in price is greater than the resulting percentage change in quantity demanded:
A. a decrease in price will increase total revenue. B. demand may be either elastic or inelastic. C. an increase in price will increase total revenue. D. demand is elastic.
If the price elasticity of demand is zero for all prices, the demand curve is
A. horizontal. B. vertical. C. neither horizontal nor vertical.