The rationing function of prices means that

A) government is responsible for setting the prices of basic foods.
B) all goods and services are produced by large firms.
C) businesses determine what goods consumers should purchase.
D) buyers and sellers synchronize their decisions through the price system.

D

Economics

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With increasing returns (falling average costs), as the remaining firms expand, their demand curves become _______________ due to foreign competition, and firms must _______________.

a. steeper; raise prices b. flatter; lower prices c. flatter; raise prices d. steeper; lower prices

Economics

Market income is defined as wages, interest, rent, and profit earned in factor markets plus cash payments to households by the government

Indicate whether the statement is true or false

Economics