When prices are allowed to fluctuate after a crisis, such as Hurricane Katrina, the high prices
A) provide information to suppliers about where goods and services are most highly desired.
B) are evidence of price gouging.
C) justify government intervention.
D) All of the above.
A
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An operational lag is the time taken by policymakers to recognize the existence of an economic expansion or recession
a. True b. False Indicate whether the statement is true or false
For an open economy, national savings can be:
A. the same as investment. B. less than investment. C. more than investment. D. All of these are true.
In which of the following U.S. industries is the rate of unionization the highest?
A. Construction. B. Government. C. Transportation. D. Agriculture.
The idea that resource allocation can remain efficient, even in the presence of externalities, as long as property rights are clearly assigned and transaction costs are low is referred to as the:
A. law of demand. B. law of diminishing returns. C. Coase Theorem. D. Black/Schloes formula.