A self-regulating market
A. eliminates shortages or surpluses through price changes.
B. can eliminate shortages quickly, but eliminates surpluses slowly.
C. renders Say's law invalid.
D. occurs only in labor markets.
A. eliminates shortages or surpluses through price changes.
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Creative destruction theory is essentially an argument that profit potential within a noncompetitive industry creates an incentive for new types of competing industry, thereby strengthening the original industry's market power
Indicate whether the statement is true or false
All of the following are macroeconomic injections into the circular flow except:
a. Consumption b. National government spending c. State and local government spending d.All of the above. e. None of the above.
The goal of libertarianism is to
a. redistribute income based on the assumption of diminishing marginal utility. b. redistribute income in order to maximize the well-being of the worst-off person in society. c. punish crimes and enforce voluntary agreements but not to redistribute income. d. measure happiness and satisfaction.
Unemployment that occurs when there are not enough jobs for the number of people in the labor force is referred to as:
A. Frictional unemployment. B. Structural unemployment. C. Cyclical unemployment. D. Seasonal unemployment.