In a perfectly competitive market, in the long run, arbitrage profits will be bid away
Indicate whether the statement is true or false
TRUE
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Something becomes money only if
A) people use it as a general medium of exchange. B) it is backed by another commodity, typically gold or silver bullion. C) the central government says it's money. D) it promises to pay the bearer a fixed quantity of a scarce metallic good.
Which of the following statements about markets is false?
a. markets are used to allocate resources in market systems b. markets can vary in geographical size c. prices are used to allocate goods in markets d. markets are used to allocate resources in centrally-planned socialist economic systems e. supply and demand explains how prices are set in competitive markets
The equilibrium price of a burger is $10, and the equilibrium quantity is 150 burgers. If the quantity of burgers sold increases to 200, the difference is a gain in net social welfare
a. True b. False Indicate whether the statement is true or false
The real GDP data could be properly thought of as
a. an index of our economic well-being. b. a measure of the total wealth of a nation. c. an index of total output or productive activity. d. an index that measures the size of government.