If individuals' demand in the marketplace does not reflect their true welfare:
A. the market result will be inefficient.
B. total surplus will be maximized.
C. consumer surplus will be negative.
D. the market result will still be efficient.
Answer: A
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Explain what an asset bubble is, when an asset bubble would form, and why the bubble will eventually burst
What will be an ideal response?
If the dollar depreciates relative to other currencies, which of the following is true? a. It takes more of the other currency to buy a dollar
b. It takes less of the other currency to buy a dollar. c. There is no change in the amount of the currency needed to buy a dollar. d. Not enough information to determine.
Inflation is a measure of the ________ of prices; the CPI is a measure of the ________ of prices.
A. current level; rate of change in the level B. base year's level; index C. rate of change in the level; current level D. index; base year's level
Which of the following is not a reason that capital deepening is an important source of economic growth?
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