Prices in a market economy perform a rationing function because they reflect
A) the demand of all buyers in the market.
B) the extent to which the goods are necessities.
C) the strength of the supply curve.
D) the relative scarcity of the goods.
D
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The developing countries have been catching up to the lower-income industrial countries in terms of economic growth
Indicate whether the statement is true or false
Refer to Figure 11-12. Which of the following statements about the input combinations shown in the diagram is false?
A) The firm produces a lower output level when it uses input combination d compared to input combination a. B) The firm incurs the same total cost when it uses input combination a or c to produce a given quantity of output. C) The firm produces the same output level when it uses input combination a or c. D) The firm produces a higher output level when it uses input combination b compared to input combination a.
The equilibrium level of employment, achieved after the complete adjustment of wages and prices, is known as the
A) zero-unemployment level of employment. B) natural state. C) invisible handshake. D) full-employment level of employment.
Patents and copyrights foster the flow of:
A. Saving and investment B. Spending and income C. Resources and products D. Inventions and ideas