if a business firm continues to sustain losses, what usually happens in a market economy?
What will be an ideal response?
it goes out of business and the resources it was using become available for use in other areas
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Explain why environmental damage would be classified as an externality.
What will be an ideal response?
Invisible hand is a term used by the economist ______ to describe how the decisions of households and firms lead to desirable market outcomes
Fill in the blank(s) with correct word
When the government enacts fiscal policy, it:
A. might make things worse. B. can bring the economy to its long-run equilibrium more quickly than it can correct itself. C. may not always be able to improve matters. D. All of these are true.
In late 1994 and early 1995, the Mexican peso fell by more than 40 percent. In an effort to strengthen the peso, then Mexican President Zedillo concentrated on the effects inflation had on the value of the peso. His plan most likely included:
A. decreasing domestic taxes. B. increasing the money supply. C. increasing domestic taxes. D. increasing government spending.