According to Adam Smith's invisible hand
A) markets need the government to intervene.
B) forces are constantly pushing markets out of equilibrium
C) people coordinate their activities, resulting in equilibrium in the market.
D) there is an invisible glove that restricts what markets can do.
C
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Assume you and your best friend set up a partnership and your lawyer tells you that as the owners, you could each stand to lose your personal wealth if the business goes bankrupt. This means a partnership
A) faces limited liability. B) has little chance of succeeding. C) faces unlimited liability. D) is not a good type of business to set up.
Of the $840 billion American Recovery and Reinvestment Act stimulus package which was enacted in 2009, the largest tax cuts occurred in which category?
A) infrastructure tax cuts B) business tax cuts C) individual tax cuts D) energy tax cuts
An increase in the price of sodium carbonate, a chemical compound used in detergents, will:
a. increase the quantity of detergents demanded. b. decrease the quantity of detergents demanded. c. decrease the demand for detergents. d. increase the demand for detergents.
When the economy is on the flatter part of the short run aggregate supply curve, efforts to change inflation with monetary policy will be ____ successful and efforts to stimulate the economy will be ____ successful
a. More; more b. More; less c. Less; more d. Less; less