According to the classical model, the income generated by production is
A) always insufficient to purchase all the goods and services produced.
B) enough to purchase all the goods and services produced.
C) fully spent on savings.
D) enough to meet the needs of everyone in society.
B
Economics
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"As Jake consumes more sodas over the course of a day, it is likely that his marginal rate of substitution of sodas for other goods will rise." Is the previous statement correct or incorrect?
What will be an ideal response?
Economics
An exception to the law of one price occurs if
A) the good is not tradeable. B) demand for the good is stronger in some countries than in others. C) exchange rates are flexible, rather than fixed. D) interest rates differ across countries.
Economics