Three basic decisions must be made by all economies. What are they?
What will be an ideal response?
what will be produced, how goods will be produced, and for whom goods will be produced
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If there is an increase in the price level in the classical model,
a. the equilibrium level of output will remain unchanged. b. real wages remain constant. c. money wages will rise proportionally. d. all of the above.
The basic money supply:
A. Is controlled by Congress and the U.S. Treasury. B. Includes savings accounts. C. Includes currency and transactions accounts. D. Includes money market mutual funds.
If Bristol-Myers Squibb discovered a miracle drug that cured some forms of cancer, which theory would apply to the profits it earned?
A. Reward for innovation B. Reward for risk-taking C. Monopoly profits D. All of choices are true.
Contractionary monetary policy tends to:
A. raise U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar. B. raise U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar. C. lower U.S. prices, make exports cheaper relative to imports, and raise the value of the dollar. D. lower U.S. prices, make exports more expensive relative to imports, and lower the value of the dollar.