Explain how a market helps determine which goods and services will be produced, how to produce them, and who gets them
What will be an ideal response?
A market promotes interaction between consumers and firms. This interaction will result in prices, which influence the decisions of consumers and firms.
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A one-time tax rebate, which is not expected to be extended in future years, will
A) have a moderately positive effect on consumption and aggregate demand. B) have no effect on consumption and aggregate demand. C) have a significant positive effect on consumption and aggregate demand, with aggregate demand growing by a multiple of the tax rebate. D) increase aggregate supply and aggregate demand.
Refer to Figure 16.3. A shift from AS1 to AS2 could be caused by
A. An increase in immigration restrictions. B. A decrease in tariffs on imported goods. C. An increase in OSHA regulations. D. An increase in environmental regulations.