In Adam Smith's competitive market economy, the question of what goods to produce is determined by:
a. the "invisible hand" of the price system.
b. businesses.
c. unions.
d. the government, through laws and regulations.
a
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If real GDP in 2016 (using 2009 prices) is lower than nominal GDP of 2015, then
A) prices in 2016 are higher than prices in 2015. B) prices in 2016 are lower than prices in 2015. C) real GDP in 2016 is larger than real GDP in 2015. D) nominal GDP in 2016 equals nominal GDP in 2015.
Refer to the graphs shown.
Which of the following combinations of points best illustrates rational consumer choice assuming the consumer's budget is $60, the price of X is $3, and the price of Y is $3?
A. A and D B. C and F C. B and E D. A and F
The decision about what goods and services will be produced in a market economy is made by
A) lawmakers in the government voting on what will be produced. B) workers deciding to produce only what the boss says must be produced. C) producers deciding what society wants most. D) consumers and firms choosing which goods and services to buy or produce. E) consumers dictating to firms what they need most.
Malfeasance at Enron, a Houston-based energy firm, led to overstatement of revenues by almost $92 billion. As Enron closed its operations, U.S. energy prices remained stable. This may have been evidence that
A. there was lack of any competition, so Enron was the winner. B. Enron could charge whatever price it wanted to for energy. C. the accounting profession needs to review its policies quickly. D. there is a competitive market in energy distribution in the United States.