Optimal market outcomes are the same as perfect market outcomes.
Answer the following statement true (T) or false (F)
False
Although outcomes of the marketplace aren't perfect, they're often optimal. Optimal outcomes are the best possible given our incomes and scarce resources.
You might also like to view...
Suppose that medical researchers discover a new drug which slows the aging process allowing the average life span in the United States to increase to 95 years of age. The lifecycle hypothesis suggests that
A) consumption spending would increase since lifetime income increases. B) consumption spending would increase since estimates of permanent income would increase. C) consumption spending would decrease since savings would rise to provide income for the longer retirement periods. D) None of the above is correct since predicted future annual incomes may not change.
If foreign exchange rates are determined by the interaction of supply and demand forces for the various currencies, then the exchange rate is:
a. fixed. b. government-determined. c. set by the value of gold. d. floating. e. improper.
The kinked demand curve exists because consumers make erratic decisions
Indicate whether the statement is true or false
___________ policies of the government can cause recessions.
A. Defense spending B. Inflation-fighting C. Poor market-based D. Welfare