Ceteris paribus, a 10 percent increase in income results in a 50 percent decline in the quantity of potatoes purchased. This implies potatoes can be categorized as _____

Economists who believe that a balanced budget is unnecessary and harmful argue that economic booms should automatically lead to smaller deficits or larger surpluses

a. True b. False Indicate whether the statement is true or false

Perfectly competitive markets are efficient because

A) they always reach equilibrium. B) firms in the market are price takers. C) the cost to society for producing the goods is exactly equal to the value that society places on the good. D) the long run equilibrium assures that the prices of resources will not increase.