The concept of "the invisible hand" suggests that
A) products are produced out of a seller's sense of charity.
B) when the seller is better off, the buyer is worse off.
C) sellers exploit consumers with high prices.
D) buyers and sellers are self-interested.
E) the command system is the only way of efficiently allocating resources.
D
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Which of the following will shift the consumption function upward?
a. A decrease in disposable income b. An increase in disposable income c. An increase in the interest rate d. Expectations of lower future prices e. An increase in net wealth
Each firm in a monopolistically competitive industry faces a downward-sloping demand curve because
a. there are many other sellers in the market. b. there are very few other sellers in the market. c. the firm's product is different from those offered by other firms in the market. d. the firm faces the threat of entry into the market by new firms.
Describe the role of the Federal Deposit Insurance Corporation (FDIC)
If the interest rate increases, there will be a(n):
a. Decrease in the amount of money held as assets b. Decrease in the transactions demand for money c. Increase in the transactions demand for money d. Increase in the amount of money held as assets