Which of the following functions is not performed by prices in a free market?
a. guiding the allocation of resources
b. conveying information about the marginal cost of production
c. making the distribution of income more equitable
d. replacing the need for governmental supervision of production
c
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Which of the following activities can give rise to a positive externality?
A) Jogging every morning B) Getting a flu vaccination C) Consuming herbal products D) Buying a pair of gloves
The downward slope of the demand for money curve is created by the:
a. transactions demand for money. b. precautionary demand for money. c. speculative demand for money. d. all of these.
What is the appropriate degree of abstraction?
a. The more detail there is, the better. b. The detail should be minimized in order to avoid all complexity. c. Abstraction is unnecessary, and should be avoided. d. Abstraction is the essence of analysis, and is pursued for its own sake. e. It depends on the objective of the analysis.
Demand for a specific brand ______ demand for the corresponding product category.
Fill in the blank(s) with the appropriate word(s).