The incentive function of prices:
A. indicates that price increases bring forth more of that resource.
B. is the idea that competitive markets will always clear.
C. applies to all resources.
D. only applies to land.
Answer: A
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Because Federal Reserve Notes (paper currency) are legal tender
A) U.S. creditors must accept them in payment of debts. B) U.S. workers must accept them as payment for labor services. C) U.S. firms must accept them as payment for goods and services. D) All of he above are correct.
Most U.S. redistribution occurs from _____
a. high-income individuals to low-income individuals b. middle-income individuals to low-income individuals c. middle-income individuals to middle-income individuals d. low-income individuals to middle-income individuals
How much more do the Chefs value the high-end woks to the low-end woks?
a. $20 b. $30 c. $40 d. $50
Define the following terms and explain their importance to the study of economics
a. greenhouse gases b. externality c. emissions permits d. known reserves