In a price system, changes in prices
A. signal to everyone in the system what goods are relatively more or less scarce.
B. signal to policy makers what goods should and should not be taxed more.
C. make it difficult for the system to function well.
D. imply that people have made mistakes in the past.
Answer: A
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Which of the following is an important factor affecting economic growth?
A) the rate of saving B) exchange rates C) the rate of interest D) the level of prices
According to the law of supply, there is a direct relationship between quantity supplied and:
a. the number of sellers. b. costs of resources. c. technology. d. the price of the good.
Labor market equilibrium is best characterized by
A. a minimum wage at which everyone is willing to work. B. a wage at which all workers are above the poverty level. C. a wage at which the number of people willing to work equals the number of workers firms are willing to hire. D. all workers receiving their ideal wage. E. a wage at which all people have a job.
If an economy is represented by a point inside its production possibilities curve:
A. it can produce more of one product even if it does not produce less of another product. B. it can produce more of one product only if it produces less of another product. C. it cannot produce more of one product unless it stops producing the other product entirely. D. it cannot possibly produce more of one product, even if it produces less of another product.