What are some reasons why coordination of economic affairs through the price system may not work perfectly?
What will be an ideal response?
There are a number of correct answers here, but three principal reasons are that there may be too few prices (that is, more markets than prices), prices may not contain sufficient information, and prices may be "sticky."
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If U.S. net exports are positive
A) other countries borrow from the United States to pay for some of the goods they purchase from the United States. B) other countries make loans to the United States so that the United States can pay for some of the goods it purchases from other countries. C) the United States sells some of the assets it owns in other countries to pay for some of the goods it sells to other countries. D) the United States borrows from other countries to pay for some of the goods the United States purchases from them.
The productivity growth slowdown of the late 1970s and early 1980s may have been due, in part, to the environmental and workplace safety regulations
a. True b. False Indicate whether the statement is true or false