Which of the following functions do prices perform?
a. prices serve as a rationing device for allocating scarce goods and services
b. prices help determine incomes
c. prices ration consumer demand
d. All of these.
d. All of these.
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As a result of slow economic growth following the recession of 2007-2009, companies including Intel and Worthington Industries cut production and employment in 2015 as a result of the sluggish growth in the total amount of spending in the economy. The total amount of spending in the economy is known as
A) planned investment spending. B) aggregate expenditure. C) deficit spending. D) equilibrium spending.
Euro-pessimists point out that:
A) rates of economic growth and inflation have converged to abysmally low levels in all Eurozone countries. B) there are still wide differences in rates of economic growth and inflation among Eurozone countries. C) the euro has appreciated considerably against the U.S. dollar. D) inflation rates have converged, but rates of economic growth have diverged among Eurozone countries.
An example of a transaction that will be a surplus item on the U.S. balance of payments is
A) a U.S. resident purchasing French wine. B) a French subsidiary's plant in New Jersey purchasing parts from the main plant in Paris. C) a gift of wheat from the U.S. government to India. D) a tourist from Germany buying a ticket to fly from New York to Chicago on American Airlines.
A significant advantage to being a member of a trade bloc is
A. reduced or eliminated tariffs among member countries. B. reduced tariff rates only for the largest member countries. C. higher tariff collections from member countries. D. None of these; there is no economic advantage to a trade bloc.