Which of the following are required for economic growth? i. more goods and services produced per hour of work ii. an increase in the average hours of labor per person iii. an increase in prices

When a market clearing price is determined

A) the exchange between buyers and sellers is voluntary. B) the exchange between buyers and sellers is directed by outside factors such as the government. C) the exchange between buyers and sellers benefits only the buyers. D) the exchange between buyers and sellers benefits only the sellers.

Which of the following correctly defines a budget constraint?

a. A model that economists use for illustrating the choices that individuals face in a situation of scarcity b. A model that shows the level of satisfaction or pleasure that people receive from their choices c. A model that shows the combinations of output that an economy can produce, given a level of technology d. A model that represents the allocation that society most desires