The market system is said to be characterized by "consumer sovereignty." This is because:
A. A sovereign government determines which consumer goods will be produced
B. The prices of consumer goods are regulated by a sovereign government
C. Firms must match their production decisions to the consumers' choices
D. Consumer goods are considered to be more important than capital goods
Answer: C
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If the euro per dollar exchange rate changes from $1 = 0.8 euros to $1 = 0.7 euros, it implies that the euro has depreciated against the dollar
a. True b. False Indicate whether the statement is true or false
Which of the following statements about transfer payments is true?
a. Transfer payments are not included in total government expenditures. b. Transfer payments involve the international remittance of funds. c. Transfer payments refer to the transfer of money by the commercial banks to the people. d. Transfer payments are made by the government to taxpayers. e. Transfer payments are made when governments purchase goods and services.