Which of the following statements is true of market prices in a perfectly competitive market?
A) Market prices are determined by the government.
B) Market prices allow for efficient allocation of scarce resources.
C) Market prices are not stable and fluctuate widely.
D) Market prices do not act as incentives for buyers.
B
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In the table above, which method is NOT technologically efficient?
A) A B) B C) C D) D
The multiplier is calculated as the
A) change in autonomous expenditure/ change in real GDP. B) change in real GDP/ change in induced spending. C) change in real GDP/ change in autonomous expenditure. D) change in nominal GDP/ change in autonomous expenditure.
There are certain variables that are so obviously related to past crises that they may serve as warning indicators of potential future crises. Identify one such variable from the following
a. Barriers to trade b. Short-term international investment c. Flexible exchange rates d. Rising international reserves e. Fluctuating share prices
A principal benefit of inflation is that it makes economic decisions easier
a. True b. False Indicate whether the statement is true or false