Economists in the field of industrial organization study how
a. central banking policies affect financial markets.
b. firms' demand for labor and individuals' supply of labor affect resource markets.
c. firms' decisions about prices and quantities depend on market conditions.
d. externalities and public goods affect the environment.
c
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What are the two tools of fiscal policy that governments can use to affect the level of aggregate demand?
A) taxation and controlling imports B) taxation and controlling exports C) government spending and taxation D) government spending and technology improvements
Which of the following is an essential feature of any economic system?
a. absolute advantage b. the profit motive for producers c. a voting procedure for choosing leaders d. prices determine resource allocation e. scarce resources