A society's institutions
A. include the laws and customs that influence the allocation of resources.
B. have no effect on people's abilities to make decisions.
C. are irrelevant when studying an economy.
D. are not related to the control of society's resources.
A. include the laws and customs that influence the allocation of resources.
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If the U.S. interest rate differential increases, in the foreign exchange market the demand for U.S. dollars ________ and the supply of U.S. dollars ________
A) increases; increases B) increases; decreases C) decreases; increases D) decreases; decreases
Other things equal, an appreciation of the Algerian dinar in relation to the euro will act to increase Algerian demand for European goods and to decrease European demand for Algerian goods
a. True b. False Indicate whether the statement is true or false
Explain how taxes are levied in a progressive income tax system and the rationale for choosing a progressive income tax structure
Perfectly competitive firms ____ earn zero economic profit in long-run equilibrium because ____
a. always; firms in perfectly competitive industries always maximize output and so flood the market until the equilibrium price of output is driven to zero b. sometimes; the demand curve for an individual perfectly competitive firm may or may not cross the company's long-run average total cost curve at its lowest point c. always; firms enter whenever their economic profit is positive and exit whenever it's negative, so in long-run equilibrium economic profit must always be zero d. never; no firm would be willing to produce if it received zero economic profit