The invisible hand refers to
A. The person who has the responsibility to coordinate all the markets in a market economy.
B. Intervention in the economy by the government bureaucrats we do not see and over whom we have no control.
C. The allocation of resources by market forces.
D. Undiscovered natural resources.
Answer: C
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A pure monopoly may generate economic profits because ________.
A. marginal revenue is constant as sales increase B. of barriers to entry C. of rising average fixed costs D. of advertising
If at a given wage, the quantity supplied of labor exceeds the quantity demanded of labor:
A) the wage rate will fall. B) the wage rate will increase. C) the aggregate price index will rise. D) the aggregate price index will fall.
Given the information in Figure 14.4, the competitive wage rate is:
A) W1. B) W2. C) W3. D) W4. E) none of the above
If X and Y are complementary goods, the demand curve for X will shift to the right when the price of Y increases
a. True b. False Indicate whether the statement is true or false