The rationing function of prices means that
A) government is responsible for setting the prices of basic foods.
B) all goods and services are produced by large firms.
C) businesses determine what goods consumers should purchase.
D) buyers and sellers synchronize their decisions through the price system.
D
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A firm will invest in a project if
A) the interest rate exceeds the opportunity cost of the project. B) the firm's level of capital is at the desired level. C) the firm's level of capital is higher than the desired level. D) the rate of return of the project is greater than the opportunity cost of the investment.
Jack F. Altrades's decision whether to purchase a good from a firm or hire resources directly in the market will
a. depend, in part, on his production skill but not on his contract negotiation skill b. depend, in part, on the opportunity cost of his time but not on his skill c. not depend on the cost of identifying, measuring, and pricing inputs d. not depend on the cost of negotiating contracts e. depend, in part, on both his skill and the opportunity cost of his time
In the Keynesian model in which the Keynesian short-run aggregate supply curve exists
A. aggregate demand determines real GDP per year. B. unemployment cannot persist for long periods of time. C. the aggregate demand curve determines the price level. D. the short-run aggregate supply curve determines real GDP.
The speculative demand for money is related to money functioning as a
A. Medium of exchange. B. Unit of account. C. Standard of value. D. Store of value.