As prices rise, people will buy fewer goods and services because:
a. the interest rate has declined.
b. aggregate demand has increased.
c. the purchasing power of the fixed quantity of money has declined.
d. the income of households has increased.
c
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Marginal benefit curves slope ________ and marginal cost curves slope ________
A) upward; upward B) upward; downward C) downward; downward D) downward; upward
Traffic lights would be considered:
A. a common resource. B. a private good. C. a public good. D. an artificially scarce good.
Perfectly competitive firms earn zero economic profit in the long run
a. True b. False Indicate whether the statement is true or false
Government in a market system can increase economic efficiency by collecting taxes in order to subsidize the production of:
A. Goods with negative externalities B. Goods with positive externalities C. Private sector goods D. Complementary goods