The price system features
A) exchanges made in currency only.
B) voluntary exchange that makes both the consumer and producer better off.
C) exchanges made only on a barter basis.
D) an exchange in which consumer is made better off and the producer is made worse off.
Answer: B
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Taxpayers are _____ with a narrowly-based tax system with many deductions than with a broad-based income tax system that treats all income equally
a. better off b. the same c. worse off d. sometimes better off
A minimum wage is the:
A. lowest wage that a firm is legally allowed to pay its workers. B. highest wage that a firm is legally obligated to pay its non-skilled labor. C. wage every high school dropout will earn if they are employed. D. prevailing wage for low-income workers in a nation.
Demand curves can be affected by the prices of related goods
a. True b. False Indicate whether the statement is true or false
If nominal GDP is $8 trillion and real GDP is $10 trillion, then the GDP deflator is
a. 80, and this indicates that the price level has decreased by 20 percent since the base year. b. 80, and this indicates that the price level has increased by 80 percent since the base year. c. 125, and this indicates that the price level has increased by 25 percent since the base year. d. 125, and this indicates that the price level has increased by 125 percent since the base year.