The market mechanism
A. Works through central planning by government.
B. Eliminates market failures created by government.
C. Works because prices serve as a means of communication between consumers and producers.
D. Is not a very efficient means of communicating consumer demand to the producers of goods and services.
Answer: C
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Given the behavior of the stock market in recent years:
A) most economists still think the efficient markets hypothesis is an accurate description of the daily behavior of the stock market B) most economists think the efficient markets hypothesis provides little insight into the behavior of the stock market C) most economists think the rational investor can outperform the stock market in the long run D) many economists still believe that it is unlikely that investors can hope to earn above-average returns in the stock market by following traditional strategies
Because private firms cannot make money pricing at marginal cost for collective consumption goods, government must produce collective consumption goods for them to exist
a. True b. False
Assume that maximum feasible hourly productions levels if all resources are utilized in the United States are either 8 yards of fabric or 4 bushels of wheat
Maximum feasible production levels if all resources are utilized in Japan are either 3 yards of fabric or 6 bushels of wheat. Based on this information A) beneficial trade is absolutely impossible between the two countries. B) the United States will benefit from trading but Japan will not. C) both nations will gain from specialization and trade, with the United States exporting wheat and Japan exporting fabric. D) both nations will gain from specialization and trade, with the United States exporting fabric and Japan exporting wheat.
Suppose a hurricane decreased the supply of oranges so that the price of oranges rose from $120 a ton to $180 a ton and quantity sold decreased from 800 tons to 240 tons. What is the absolute value of the price elasticity of demand?
A) 0.11
B) 0.37
C) 2.69
D) 9.33