In a market economy,
a. supply determines demand and demand, in turn, determines prices.
b. demand determines supply and supply, in turn, determines prices.
c. the allocation of scarce resources determines prices and prices, in turn, determine supply and demand.
d. supply and demand determine prices and prices, in turn, allocate the economy's scarce resources.
d
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Which of the following most closely resembles a perfectly competitive market?
a. the airline industry b. the soft drink industry c. the wheat market d. long-distance telephone service
If tastes for a good increased and the price of a substitute good decreased at the same time, as a result: a. prices would rise
b. prices would fall. c. larger quantities to be exchanged. d. we would not know which direction either prices or quantities exchanged would be altered without more information.
The production function is a mathematical function that shows:
A) the most cost efficient means of producing output. B) the relationship between inputs and the quantity of output produced. C) how various inputs are produced. D) the most efficient level of output produced in an economy.
For the purpose of statistically reporting the unemployment rate, "discouraged workers" are:
A. counted. B. not counted. C. offered other jobs. D. trained to do different work.