Which of the following represents key strengths of the market economy as a system of allocation?
a. Goods and services are allocated based on willingness and ability to pay,rather than based on need
b. Producers have strong incentives to innovate because successful innovatorsare rewarded with higher profit.
c. Since price is freely set based on supply and demand, shortages and surplusesare minimized.
d. All of the answers above are correct.
d
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The linear regression equation, Y = a + bX, was estimated. The following computer printout was obtained: 
Given the above information, which of the following statements is correct at the 1% level of significance?
A. â is statistically significant, but b? is not. B. b? is statistically significant, but a? is not. C. Neither â nor b? is statistically significant. D. Both â and b? are statistically significant.
An example of a(n) ________ comparative advantage is that some U.S. consumers prefer German beer over American beer because German beer has a reputation for tasting better.
A. unwarranted B. acquired C. subsidized D. natural