Why is wage and price flexibility crucial to the idea of the "invisible hand"?
What will be an ideal response?
Wage and price flexibility is crucial because in a free-market system, changes in wages and prices are the signals that coordinate the actions of people and businesses in the economy.
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Every economic system must decide
a. what and how much to produce. b. how to produce. c. how to distribute goods and services to the population. d. All of these.
The point where quantity demanded and quantity supplied are equal is known as the
a. ceiling price. b. minimum price. c. equilibrium price. d. administered price.
The marginal propensity to consume (mpc) can be defined as the fraction of
A) a change in income that is spent. B) a change in income that is saved. C) income that is spent. D) income that is saved.
Which of the following statements holds true for eminent domain?
(a) The costs are diverse and the benefits concentrated to those special groups who secured it. (b) It supports rent-seeking where some individuals gain and others lose. (c) The owner of the property secured through eminent domain has no legal recourse. (d) It is well-defined and has been applied throughout U.S. history with consistency and accuracy to support economic growth and development.