The market process will likely fail to fully coordinate supply and demand if transaction costs are
A) non-existent.
B) significant.
C) locally perverse.
D) inconsequential.
B
You might also like to view...
A small open economy is an economy
A) in which both imports and exports are less than 5% of GDP. B) whose firms and consumers are individually, but not collectively price takers. C) whose firms and consumers are collectively, but not individually price takers. D) whose firms and consumers are individually and collectively price takers.
To compare GDPs over time, we may want to adjust for the effect of inflation; therefore,
a. real GDP is converted into nominal GDP by subtracting the inflation rate from real GDP b. nominal GDP is converted into real GDP by subtracting the inflation rate from nominal GDP c. nominal GDP is converted into real GDP by dividing nominal GDP by the GDP deflator, then multiplying by 100 d. nominal GDP is divided by the inflation rate, then multiplying by the price index e. the ratio of the consumer price index to the GDP deflator is multiplied by the real GDP
An increase in the economic output of a society is known as ______.
a. efficiency b. scarcity c. consumerism d. growth
In the labor market, contracts are often designed to include a variable salary component that is tied to some measure of performance. Why?
A. Such contracts provide workers with the incentive to work hard. B. Labor unions demand a variable salary component. C. The variable component reduces wages paid by firms. D. Most people are risk-loving and thus variability in their compensation leads to higher total utility.