_____ is contrary to a laissez-faire economic system
a. Active government intervention in all economic decisions
b. Reliance on prices to adjust to changing market conditions
c. The theory put forward by classical economics
d. The theory introduced by neoclassical economics
e. The market acting as an invisible hand
a
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The price elasticity of supply is always a positive value because
i. there is a direct relationship between the price and the quantity supplied. ii. as the equilibrium price increases, the equilibrium quantity also always increases. iii. buyers are willing to pay a higher price for larger quantities. A) i only B) ii only C) iii only D) i and ii E) ii and iii
Suppose the U.S. dollar depreciates, and monetary authorities respond to stabilize both output and inflation. Which of the following is a correct description of the short-run consequences?
A) output, inflation, and the real interest rate have all increased B) output, inflation, and the real interest rate have returned to their original values C) output and inflation are higher, while the real interest rate has fallen D) output and inflation have returned to their original values, while the real interest rate is increased
The slope of an upward-sloping line is positive, and the slope of a downward-sloping line is negative
a. True b. False Indicate whether the statement is true or false
A country's production possibilities boundary shows that
A) when a society combines its resources inefficiently, it cannot produce more of one good without producing less of the other good. B) the supply for goods always exceeds the demand. C) all points inside the boundary are preferred to all points on the boundary. D) when a society combines its resources efficiently, it is always possible to produce more of all goods. E) when a society combines its resources efficiently, it cannot produce more of one good without producing less of the other good.