A competitive market will
A. create excess demand because wants exceed needs.
B. move towards equilibrium because producers set the prices.
C. create excess supply because producer want profits.
D. move towards equilibrium quantity because both producers and consumers act in their own best interest.
D. move towards equilibrium quantity because both producers and consumers act in their own best interest.
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Which of the following statements is true?
a. The United States today comes closer to the socialist form of economic organization than it does capitalism. b. When central planners set prices above equilibrium for goods and services they create shortages. c. According to Karl Marx, under capitalism, workers would be exploited and would revolt against the owners of capital. d. Adam Smith argued that government's role in society would be to do absolutely nothing.
An investment grows from $2,000 to $2,750 over the period of 10 years. What average annual growth rate will produce this result?
What will be an ideal response?
If income increases, the budget line:
A. rotates counterclockwise. B. shifts to the right. C. rotates clockwise. D. shifts to the left.
Under present U.S. federal law, which one of the following is a government-inhibited good?
A. cocaine B. medical care C. education D. housing