In a market system, as one industry expands while another contracts, resources will flow:
A. Away from the expanding industry towards the contracting one
B. From one industry due to the changes in resource prices paid by firms
C. Towards the industry where the product demand is declining
D. Because resource allocation will have to equalize between the two industries
Answer: B
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The self-correcting tendency of the economy means that falling inflation eventually eliminates:
A. exogenous spending. B. recessionary gaps. C. expansionary gaps. D. unemployment.
The dominance of banks in Germany comes at the expense of __________ markets there
A) securities B) government bond C) consumer borrowing D) foreign exchange
Which of the following is least likely to be the reason women are underrepresented in the economics profession?
a. labor market discrimination b. the choice of women to select other occupations c. cultural bias in primary and secondary education d. the inability of women to solve problems in economics
Answer the question based on the following list of factors that are related to the aggregate demand curve.
Refer to the list above. Investment spending would most likely be influenced by changes in:
A. 1 and 3
B. 4 and 6
C. 5 and 10
D. 8 and 9