In a market economy, what specifies the terms of exchange, facilitating exchange between strangers?
A. contracts
B. insurance
C. patents
D. accounting rules
Answer: A
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What is a normal profit?
What will be an ideal response?
Assuming that the growth rate of full-employment output is 3%, and that the actual unemployment rate fell 2 percentage points in the last year, Okun's Law predicts that output growth rate over the past year was
A) -1% B) 3% C) 5% D) 7%
________is the problem of separating good from bad drivers
a. Moral hazard b. Adverse selection c. Decision making d. None of the above
Which of the following will tend to occur if price floors are imposed on a product?
a. persistent surpluses b. problems of disposal of goods c. disguised discounts developing to eliminate excess production d. overinvestment in the industry e. All of the above are correct.