in a market economy?
A. Resources are distributed equal across the all possible users.
B. resources move to higher valued uses in respond to change in price.
C. Resources usage is independent of the price.
D. Most resources are distributed by the government.
E. All of the above.
B. resources move to higher valued uses in respond to change in price.
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Using Scenario 2 suppose Susan has eliminated two of the answers but is unsure of which of the remaining three answers are correct. Determine whether it is rational for Bill to guess
What will be an ideal response?
Assume that the expectation of declining housing prices cause households to reduce their demand for new houses and the financing that accompanies it. If the nation has highly mobile international capital markets and a flexible exchange rate system, what happens to the GDP Price Index and current international transactions in the context of the Three-Sector-Model?
a. The GDP Price Index rises, and current international transactions become more negative (or less positive). b. The GDP Price Index rises, and current international transactions become more positive (or less negative). c. Real GDP Price Index falls, and current international transactions rises. d. There is not enough information to determine what happens to these two macroeconomic variables. e. The GDP Price Index falls, and current international transactions remain the same.
The price index was 220 in one year and 238.2 in the next year. What was the inflation rate?
a. 8.3 percent b. 108.3 percent c. 4.8 percent d. 38.2 percent
The regular pattern of income variation over a person's life is called the