Resources are directed from one industry to another by
A. Market failure.
B. Changes in market prices.
C. Government failure.
D. None of the choices are correct.
Answer: B
You might also like to view...
A firm in monopolistic competition can determine what price to charge for its product because of
A) barriers to entry. B) economies of scale. C) product differentiation. D) the fact there are many buyers.
Why do we need a units-free measure of the responsiveness of the quantity supplied of a good or service to a change in its price?
What will be an ideal response?
The determinants of price elasticity of demand include:
A. availability of substitutes, cost relative to benefit, and scope of market. B. degree of necessity, cost relative to income, scope of market, and adjustment time. C. availability of complements, cost relative to income, and scope of market. D. cost relative to income, scope of demand, and adjustment time.
Monetary policy is most likely to result in inflation when the aggregate supply curve is
A. Horizontal and the Fed lowers the reserve ratio. B. Horizontal and the Fed sells securities. C. Vertical and the Fed raises the reserve requirement. D. Vertical and the Fed lowers the discount rate.