Scarce resources are ultimately allocated toward the production of goods most wanted by society because:
A. firms attempt to maximize profits.
B. they are most efficiently utilized in these areas.
C. managers are benevolent.
D. consumers demand inexpensive goods and services.
Answer: A
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What will be an ideal response?
An increase in the marginal tax rate
A) decreases the expenditure multiplier but cannot make it negative. B) has no effect on the expenditure multiplier. C) can either increase or decrease the expenditure multiplier. D) increases the expenditure multiplier. E) decreases the expenditure multiplier and can make it negative.
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Fixed investment refers to investment in stocks, bonds, and improvements to land
a. True b. False Indicate whether the statement is true or false