In a properly functioning free market
a. the price of any good reflects its marginal utility to consumers.
b. price will equal marginal cost.
c. the invisible hand will assure that society's resources are used efficiently.
d. All of the above are correct.
d
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Who still has to economize?
A) The senior citizen who receives a 10% discount at the local coffee shop B) The day-after-Christmas shopper who enjoys sales of up to 70% on holiday merchandise C) Bill Gates D) All of the above. E) None of the above.
An effective program used to fight transient poverty is:
A. unemployment insurance. B. health insurance. C. job training. D. All of these are effective at fighting transient poverty.
Poor Asian countries may have per-capita GDP's that may be less than $250 . Why is this somewhat misleading for comparative purposes?
a. Most rich country GDP is nonmarket activity. b. A significant amount of poor country GDP is nonmarket activity. c. Poor countries do not use dollars. d. Poor countries have few resources.
Due to the distortionary effects of inflation, capital investment may be reduced due to higher price levels
a. True b. False Indicate whether the statement is true or false