Which best describes the "invisible hand" concept?
a. Sufficiently detailed central direction of an economy will maximize the public's best interests
b. The desires of producers and resource suppliers to further their own self-interest will automatically promote the social interest
c. The market system works best when resources are highly substitutable
d. The problem of scarcity can best be overcome in a system
b. The desires of producers and resource suppliers to further their own self-interest will automatically promote the social interest
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Holding the nominal interest rate constant, a ________ in the expected rate of inflation tends to ________ the real interest rate
A) rise; increase. B) fall, decrease. C) fall; increase. D) rise; improve.
If the marginal tax rate is less than the average tax rate, the tax system is
A) progressive. B) proportional. C) regressive. D) liberal.
Refer to the graphs below. Which one shows demand with a price-elasticity coefficient equal to zero?
A. Graph A
B. Graph B
C. Graph C
D. Graph D
Potential GDP is the output that would be produced if the economy was experiencing:
A. No unemployment B. Free markets and international trade C. No inflation D. Full employment