Firms exist because of
A) incomplete contracts.
B) team production.
C) the incentive to free ride.
D) all of these choices.
D
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The role that prices play in directing resources away from overcrowded markets and towards markets that are underserved is known as the ________ function of price.
A. market B. allocative C. rationing D. transitive
If the coefficient of elasticity is 25,
A) demand is 25%. B) demand is about to change for the better. C) demand is very elastic. D) demand is very inelastic. E) the law of demand hardly applies.
Net exports is the key to the equality of aggregate expenditures and aggregate income.
Answer the following statement true (T) or false (F)
Interest-rate risk would not matter to which of the following bondholders?
A. A holder of a U.S. government bond. B. A holder of a U.S. government bond that plans on holding it until it matures. C. A holder of a U.S. government bond who plans on selling it in one year. D. A holder of a U.S. government bond indexed for inflation.