Raising household savings could be beneficial because ________
A) it translates into higher investment
B) severe economic downturns can be "better-weathered"
C) it provides a cushion to avoid bankruptcies
D) all of the above
E) none of the above
D
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Ford Motor Company started producing the Model A at plants scattered around the United States
A) to locate its production centers closer to its customers. B) because it was not able to attract skilled workers in Michigan (where its first plant was located). C) because diseconomies of scale at its initial River Rouge plant resulted in high production costs. D) to save on transport costs.
Which tools allow economists to determine if the allocation of resources determined by free markets is desirable?
a. profits and costs to firms b. consumer and producer surplus c. the equilibrium price and quantity d. incomes of and prices paid by buyers
A system of allocating scarce goods and services using some criteria other than price:
a. rationing b. price floor c. excess demand d. surplus e. equilibrium
Suppose the only revenue taken in by the government is in the form of income tax, and the tax rate is 10%. If aggregate income is $800 billion, and government expenditures are $100 billion then the government budget has...
What will be an ideal response?