Ultimately, the opportunity for mutually beneficial trade between two individuals is based on:
A. the marginal utilities each consumer derives from each good.
B. the price each consumer is will to pay for each good.
C. the degree of substitutability of each good.
D. a comparison of the individuals' utility function.
A. the marginal utilities each consumer derives from each good.
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The Phillips curve is a statistical relationship that was misrepresented as showing
a. disequilibrium outcomes of uncoordinated policy. b. alternative equilibrium points that the economy could achieve. c. the unemployment rates necessary to close a recessionary gap. d. the increases in interest rates from different inflation rates.
In competitive markets,
a. firms produce identical products. b. buyers can influence the market price more easily than sellers. c. markets are more likely to be in equilibrium. d. sellers are price setters.