An economic system in which relative prices change to reflect changes in supply and demand for different goods and services is known as a

A. socialist system.
B. market.
C. communist system.
D. ration.


Answer: B

Economics

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However, this type of bargaining will tend to be limited when:

Economics

In late 2010 the National Bank of Australia offered a 4 percent interest rate on a savings account while Bank of America offered 2 percent. This difference means that

A) people expect the U.S. dollar to appreciate to 8 percent against the Australian dollar and interest rate parity to occur. B) there will be a surplus of U.S. dollars in the foreign exchange market. C) people expect the U.S. dollar to appreciate by 2 percent against the Australian dollar and interest rate parity to occur. D) there will be a shortage of Australian dollars in the foreign exchange markets.

Economics

Gross domestic product (GDP) understates total economic activity because it ignores household production of goods and services

a. True b. False Indicate whether the statement is true or false

Economics

Refer to the above figure. Marginal costs are represented by curve

A. 1. B. 2. C. 3. D. 4.

Economics