Which of the following correctly explains the role of economic agents in a free market?
A) Economic agents set production quotas for sellers in the market.
B) Economic agents set prices according to the production cost of each good.
C) Economic agents allocate goods to those buyers who need the goods the most.
D) Economic agents allocate goods to those buyers who value the goods the most.
D
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The expenditure multipliers occur because
A) any change in real GDP must also change the price level. B) a change in households' incomes changes autonomous expenditure. C) government expenditure on goods and services change by a proportional amount to government taxes. D) a change in autonomous expenditures changes households' incomes. E) a change in autonomous expenditure causes real GDP to change in the opposite direction.
A price floor represents
A) a maximum price that can be legally charged for a product or service. B) a minimum price that can be legally charged for a good or service. C) a lottery imposed upon producers by the government. D) a first come, first served mechanism for controlling prices.
Suppose consumer tastes shift toward the consumption of apples. Which of the following statements is an accurate description of the impact of this event on the market for apples?
a. There is an increase in the demand for apples and an increase in the quantity supplied of apples. b. There is an increase in the demand and supply of apples. c. There is an increase in the quantity demanded of apples and in the supply for apples. d. There is an increase in the demand for apples and a decrease in the supply of apples. e. There is a decrease in the quantity demanded of apples and an increase in the supply for apples.
In 1995, the United States threatened to impose 100 percent tariffs on ________ from ________ if it didn't loosen its protectionist policies.
A. luxury cars; Japan B. auto parts; Japan C. brandies; France D. light trucks; Germany