Market prices provide information to consumers, helping them coordinate their activities so long as which of the following conditions is met?
a. Prices are legally kept equal in all markets, preventing unfair price increases in markets with shortages and unfair price decreases when a market surplus is present.
b. The government carefully screens producers and effectively keeps inefficient producers out of the market.
c. Prices are not allowed to rise too high, causing a shortage.
d. Competition is present and buyers and sellers are free to choose mutually agreeable prices.
d. Competition is present and buyers and sellers are free to choose mutually agreeable prices.
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Present value:
A. is always greater than the future value of money. B. does not account for inflation. C. is how much an amount of money obtained in the future is worth today. D. All of these statements are true.
Minimum wage legislation:
a. sets a price ceiling above the market-clearing price. b. has no impact if the minimum wage is above the market-clearing price. c. has the same impact in all labor markets. d. creates unemployment when the minimum wage is above the equilibrium wage. e. is opposed by organized labor.
The long-run equilibrium level of RGDP only changes when the LRAS shifts
a. True b. False Indicate whether the statement is true or false
If the price of a product increases, we would expect:
A. supply to decrease. B. quantity supplied to increase. C. demand to decrease. D. quantity demanded to increase.