The market price system provides a highly efficient mechanism for disseminating information about relative scarcities of goods, services, labor, and financial capital.
Select whether the statement is true or false.
A. True
B. False
A. True
This statement is true. The market price system provides a highly efficient mechanism for disseminating information about relative scarcities of goods, services, labor, and financial capital.
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For real-world economies, the Gini coefficient lies between
a. 1 and 10 b. 0 and 100 c. 0 and 1 d. –1 and +1 e. 0 and infinity
The long-run effects of rent controls are a good illustration of the principle that
a. society faces a short-run tradeoff between unemployment and inflation. b. the cost of something is what you give up to get it. c. people respond to incentives. d. government can sometimes improve on market outcomes.
An indifference curve cannot be positively sloped because
A) the law of diminishing marginal utility would be violated. B) the substitution effect would be violated. C) a point to the right of another point will represent a lower quantity of both goods and a reduction in utility. D) a point to the right of another point will represent a higher quantity of both goods and an increase in utility.
Refer to the above figure. MRP0Â represents
A. the supply curve for the product. B. the demand curve for labor. C. the supply curve for labor. D. the demand curve for the product.