Which of the following statements is false?
A. One of the basic principles capitalism is based on is to "trust no one."
B. To have real competition in a market economy no one business should be able to have any influence over price.
C. A basic trade-off exists between the goals of equity and efficiency for a society.
D. The forces of supply and demand will NOT automatically lead to an equitable distribution of income.
A. One of the basic principles capitalism is based on is to "trust no one."
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The money supply, as measured by M1, consists almost entirely of currency
Indicate whether the statement is true or false
Which of the following is an example of a good with a highly elastic supply curve?
a. luxury goods b. tropical vacations c. pizza d. sports vehicles
Which statement is correct regarding allocative efficiency in monopolistic competition?
a. When new competitors enter a monopolistically competitive industry, the demand curve for each firm will shift to the left. b. When new competitors enter a monopolistically competitive industry, the demand curve for each firm will shift to the right. c. When new competitors exit a monopolistically competitive industry, the demand curve for each firm will shift to the left. d. When new competitors enter a monopolistically competitive industry, the demand curve for each firm will not be affected.
If the quantity of goods and services produced in the economy decreases
A) it may be possible for real GDP to increase. B) real GDP would certainly increase. C) it may be possible for nominal GDP to increase. D) nominal GDP would certainly increase.