The invisible hand suggests that:
A) individuals working for self-interest will eventually maximize the well-being of society.
B) equilibrium in a competitive market is determined independent of demand and supply.
C) government intervention is necessary to rectify market imperfections.
D) the price mechanism allocates resources only to the people with high income in the country.
A
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The elements of investment spending are ________
A) calculated only in real terms B) equivalent to their corresponding international transactions C) consumption, government, exports and imports D) highly procyclical
The level of detail in an economic model
a. is as close as possible to the level of detail in reality b. depends on the purpose of the model c. is as complex as possible d. is the same regardless of the purpose of the model e. is as complex as possible to accomplish its purpose
Under monopoly, resources are allocated as efficiently as in perfect competition.
Answer the following statement true (T) or false (F)
Offering discounts to senior citizens is
A. a philanthropic decision. B. peak-level pricing. C. price discrimination. D. an inefficient practice.