The contestable market theory best applies to

In a market economy, differences in incomes: a. reflect the relative scarcity of resources

b. provide individuals with an incentive to supply resources that are valued by others. c. determine the income distribution among market participants. d. all of the above are correct.

What are two major outcomes from the large U.S. trade deficits?

A. An increase in domestic consumption and U.S. indebtedness B. A decrease in domestic consumption and U.S. indebtedness C. An increase in domestic consumption and a decrease in U.S. indebtedness D. A decrease in domestic consumption and an increase in U.S. indebtedness