Which of the following is the most accurate example of the working of the free market?
a. A government agency orders increased production of wheat bread.
b. A CEO increases the production of various sport cars based on the demand for these cars in several small towns.
c. The soaring demand of millions of consumers causes numerous companies to increase the supply of HD televisions.
d. The increased demand for Choco Bars by people older than 80 causes the manufacturer to increase production slightly.
c. The soaring demand of millions of consumers causes numerous companies to increase the supply of HD televisions.
You might also like to view...
The statement, "My Hello Kitty Limited Edition Vespa scooter is worth $5,500" represents money's function as a
A) medium of exchange. B) store of value. C) standard of value. D) commodity.
Steady state growth will occur according to Robert Solow when
A) y = k. B) y = n. C) kn = y. D) k = n.
The required reserve ratio for a bank is set by:
a. Congress. b. the bank itself. c. the banking system. d. the Treasury Department. e. the Federal Reserve.
What is the difference between economies of scale and economies of scope? Provide an example of each that pertains to financial institutions.
What will be an ideal response?