The economy will reach equilibrium in a simple economy only if saving is
a. greater than investment.
b. less than investment.
c. equal to investment.
d. equal to disposable income.
c
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If all prices, including the price of beef, increase by 3%, then the relative price of beef has ________ and inflation ________.
A. remained constant; has not occurred B. remained constant; has occurred C. increased; has not occurred D. increased; has occurred
Consider a perfectly competitive firm whose minimum average total cost is $100 . This firm is representative of all the firms in the market. If the market price is $80, then in the long run
a. new, more-efficient firms will be attracted into the industry b. market supply will fall c. the firm's average revenue will fall d. all the firms currently operating will increase output e. total market output will rise
Centrally planned economies use free-market systems for their production planning
a. True b. False Indicate whether the statement is true or false
Which of the following is an important ingredient of efficient economic organization?
a. high marginal tax rates b. competitive markets c. rapid increases in the money supply d. imposition of high tariffs that will protect domestic producers from the ravages of foreign competition