A market economy depends on market mechanisms to:
a. determine the most efficient way of using resources
b. determine how large the government's budget deficit should be.
c. decide how much government regulation there should be.
d. provide everyone with a minimum level of income.
a
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To measure core inflation, the BLS removes goods that:
A. have historically volatile prices. B. are considered necessities. C. are luxury goods. D. are durable and hold a constant value.
Suppose demand decreases and supply increases. Which of the following will happen?
a. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will decrease. b. Equilibrium price will rise, fall, or stay the same while equilibrium quantity will increase. c. Equilibrium quantity will rise, fall, or stay the same and equilibrium price will increase. d. Equilibrium quantity will rise, fall, or stay the same while equilibrium price will decrease. e. The change in equilibrium price and quantity cannot be determined.
Drawing on her account at Regional Bank, Samantha writes a check to Isabella, who deposits the check in her account at Local Bank. Once the check has cleared, which of the following will occur to the reserves of the banking system and the M1 money supply?
a. Bank reserves will increase; M1 will increase. b. Bank reserves will increase; there will be no change in M1. c. There will be no change in bank reserves; M1 will increase. d. There will be no changes in either bank reserves or M1.
Refer to the graph below showing a linear demand curve for a monopolist. In which range of the demand curve (or output quantity) will the firm operate?
A. To the right of point W
B. Between V and W
C. Between S and T
D. Between quantity 0 and S