Chapter 3 in the Undercover Economist on the "World of Truth" emphasizes
A) That prices convey important signals about the state of the world
B) That production without prices is now just as efficient as with them because of advances on software
C) That most people do not respond to prices very much
D) That prices are important but easily manipulated by large producers
Answer: A) That prices convey important signals about the state of the world
You might also like to view...
When trying to increase aggregate demand during a period of serious unemployment,
a. monetary and fiscal policies are likely to be equally effective. b. monetary policy is likely to be more effective than fiscal policy. c. fiscal policy is likely to be more effective than monetary policy. d. laissez-faire policy is likely to be most effective.
Assume the one-year interest rate on a bond is 8% and the expected one-year rate a year from now is 12%. According to the expectations theory of the term structure of interest rates, the two-year rate will be
A. 8%. B. 10%. C. 12%. D. 22%.