How do modern markets differ from other economic systems in their capacity to produce "growth miracles"?
While other societies have had spectacular invention records, none compare with the success of the industrialized market economies when it comes to their ability to generate the kind of sustained rapid growth we have seen in the last two hundred years. Although influences such as political changes, religious beliefs, and historical accidents have surely contributed to this growth, two features of market economies seem to be key: free competition and the use of innovation by firms to compete with their rivals.
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Which of the following statements is correct?
I. The Fed can periodically and without warning examine member commercial banks to ensure that they are conforming to current banking standards. II. The Fed helps the government collect certain tax revenues and aids in the purchase and sale of government securities. A) I only B) II only C) Both I and II D) Neither I nor II
The economic profit of a perfectly competitive firm
A) is less than its total revenue. B) equals its total revenue. C) is greater than its total revenue. D) is less than its total revenue if its supply curve is inelastic and is greater than its total revenue if its supply curve is elastic.
If Tucker University increases tuition in order to increase its revenue, it will:
a. be successful if demand is inelastic. b. be successful if supply is elastic. c. not be successful if the demand curve slopes downward. d. be successful if demand is elastic.
In the late 1920s, you could buy $10,000 worth of stock by putting down as little as
A. $100. B. $1,000. C. $2,500. D. $5,000.