The market system is also called the price system because
A) rising prices are the signal to producers to offer more of a particular good.
B) people pay money in markets.
C) everything has a price tag.
D) inflation is a significant problem.
Answer: A
You might also like to view...
According to the saving and investment equation, if net foreign investment rises by $60 million
A) national saving will fall by $60 million. B) private saving will fall by $60 million. C) national saving will increase by $60 million. D) domestic investment will rise by $60 million.
If the average propensity to consume is 1.0, the marginal propensity to consume is 0.8, and real disposable income increases by $100, the additional saving is
A) $0. B) $20. C) $80. D) $100.
The term oligopoly indicates:
A. a one-firm industry. B. many producers of a differentiated product. C. a few firms producing either a differentiated or a homogeneous product. D. an industry whose four-firm concentration ratio is low.
All of the following are advantages of a corporation EXCEPT
A. unlimited life. B. limited liability. C. double taxation. D. ability to raise large sums of financial capital.