In a market economy,

a. there is a fixed economic pie to be divided among individuals.
b. differences in incomes provide individuals with an incentive to supply resources that are highly valued by others.
c. a central distributing agency carves up the economic pie and allocates slices to individuals.
d. both a and b above are true.

B

Economics

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Refer to Figure 13-3. Which of the points in the above graph are possible short-run equilibria?

A) A and D B) A and C C) A and B D) A, B, C, and D

Economics

If the balance on the current account is $842 billion and the balance on the financial account is -$603 billion, what is the balance on the capital account, assuming no statistical discrepancy?

A) $1,445 billion B) $239 billion C) $0 D) -$239 billion

Economics