Which of the following is a major implication of the invisible hand concept?
a. When directed by competitive market prices, the actions of self-interested individuals will tend to promote overall economic prosperity.
b. Prosperity cannot be achieved unless the selfish nature of people can be changed.
c. Competition is harmful to the health of an economy because it results in wasteful duplication.
d. Government-operated firms tend to have higher efficiency and lower costs than private sector firms.
A
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Refer to the table above. What is the total revenue when the monopolist charges a price of $6?
A) $1,550 B) $1,800 C) $2,150 D) $3,200
If the real interest rate is -1.4% and the nominal interest rate is 0.6%, expected inflation equals
A) -2% B) -0.8% C) 0.8% D) 2%
Variable-rate mortgages decrease the risks associated with unexpected inflation
a. True b. False Indicate whether the statement is true or false
The fall of actual GDP below the level of potential GDP is a signal that the economy is in a recession
a. True b. False Indicate whether the statement is true or false