In a perfectly competitive market, traders bear the risk of opportunism because they are not in a position to choose from numerous potential counterparties while making a deal
Indicate whether the statement is true or false
F
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The equilibrium price of a good occurs if the
A) quantity of the good demanded equals the quantity of the good supplied. B) quantity of the good demanded is greater than the quantity of the good supplied. C) quantity of the good demanded is less than the quantity of the good supplied. D) demand for the good is equal to the supply of the good. E) price of the good seems reasonable to most buyers.
Unemployment caused by a business cycle recession is called cyclical unemployment
Indicate whether the statement is true or false
If total output is calculated by adding up the market value of goods and services produced, then more expensive items:
A. receive the same weight as cheaper items. B. receive a smaller weight than cheaper items. C. receive a greater weight than cheaper items. D. are double counted.
Trade-offs force society to make choices when answering what three fundamental questions?
A) What will be the prices of goods and services; how will these goods and services be produced; and who will receive them? B) What goods and services to produce; how will these goods and services be produced; and who receives them? C) Who gets jobs; what wages do workers earn; and who owns what property? D) How much will be saved; what will be produced; and how can these goods and services be fairly distributed?