The self-correcting tendency of the economy means that rising inflation eventually eliminates:

A. unemployment.
B. exogenous spending.
C. recessionary gaps.
D. expansionary gaps.


Answer: D

Economics

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When the price of a good is below its equilibrium level under perfect competition,

A. consumers would benefit from an expansion of output. B. some consumers are earning larger consumer’s surpluses than they would in equilibrium. C. the market is not operating at maximum efficiency. D. All of the responses are correct.

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Which of the following is NOT an advantage of a partnership?

A) limited liability B) easy to form C) Profits are subject to only personal taxation. D) permits more effective specialization in occupations

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If Apple, a company that produces smartphones, purchases a company that specializes in developing phone apps, we would have an example of

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Economics