Prices

A. solve the problem of distribution of products among consumers.
B. act as rationing devices.
C. under laissez-faire produce an efficient allocation of resources.
D. do all of the things listed here.


Answer: D

Economics

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Suppose the production of VCRs can be represented by the following production function: q = L0.4 K0.4. The firm currently produces units. If all inputs doubled, the new level of output will equal

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Economics

Assume that the expectation of a recession next year causes business investments and household consumption to fall, as well as the financing to support it. If the nation has low mobility international capital markets and a fixed exchange rate system, what happens to the GDP Price Index and the nominal value of the domestic currency in the context of the Three-Sector-Model? a. The GDP Price Index

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Economics