Free markets produce allocatively efficient outcomes and have no flaws.
Answer the following statement true (T) or false (F)
False
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What is the capital accumulation equation used by Solow?
What will be an ideal response?
Which of the following examples definitely illustrates a depreciation of the U.S. dollar?
A) The dollar exchanges for 120 euros and then exchanges for 100 euros. B) The dollar exchanges for 100 euros and then exchanges for 110 euros. C) The dollar exchanges for 275 euros and then exchanges for 250 yen. D) The dollar exchanges for 250 yen and then exchanges for 275 euros.
A country that does not engage in international trade is likely to face a problem because: a. some industries are too small to be efficient if restricted to their domestic markets alone. b. it cannot produce along its production possibilities frontier
c. domestic producers face a fluctuating demand for their products. d. it cannot consume at a point below its production possibilities frontier.
People go to the bank more frequently to reduce currency holdings when inflation is high. The sacrifice of time and convenience that is involved in doing that is referred to as
a. inflation-induced tax distortion. b. relative-price-variability cost. c. shoeleather cost. d. menu cost.