Which of the following is a function performed by market prices?
a. Market prices communicate information to buyers and sellers.
b. Market prices coordinate the decisions of buyers and sellers.
c. Market prices motivate entrepreneurs to produce those products that are currently most desired relative to their costs of production.
d. All of the above are functions performed by market prices.
D
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The Fed can raise the discount rate when it wants to:
a. decrease the money supply. b. increase the money supply. c. decrease the budget deficit. d. increase the budget deficit.
When the federal government spends more money than it receives in __________, it creates a need to borrow money, which may be fulfilled internationally and impacts the nation’s trade balance.
a. taxes b. sales c. interest d. income
Advertising never makes sense for an oligopolistic firm
a. True b. False Indicate whether the statement is true or false
Electronics wastes are a potential problem because
a. recovery rates have been declining b. consumption of electronics products and hence waste generation are rising over time c. some contain toxic materials d. all of the above e. (b) and (c) only