In a market economy, prices are the signals that guide the allocation of scarce resources
a. True
b. False
Indicate whether the statement is true or false
True
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Slowdonia's current growth rate of real GDP per person is 2 percent a year. How long will it take to double real GDP per person?
A) half a year B) approximately 10 years C) 28.6 years D) 35 years
The law of supply implies that the supply curve is
A) flat. B) upward sloping. C) downward sloping. D) vertical.
If a nation has "cheap labor,"
a. it can still benefit from trade. b. other nations can still compete with it. c. it cannot have a comparative advantage in everything. d. All of the above are true.
The unemployment rate that would be consistent with full employment is:
A. a fixed unemployment rate that does not change over time. B. equal to the cyclical unemployment rate. C. equal to zero. D. equal to the total of frictional and structural unemployment.