In markets, the invisible hand allocates resources efficiently
a. in all cases.
b. when the buyers and sellers are the only interested parties.
c. when there are positive externalities, but not when there are negative externalities.
d. when there are negative externalities, but not when there are positive externalities.
b
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Refer to Table 3-2. The table above shows the demand schedules for caviar of two individuals (Ari and Sonia) and the rest of the market. If the price of caviar rises from $65 to $75, the market quantity demanded would
A) decrease by 52 oz. B) decrease by 36 oz. C) increase by 36 oz. D) increase by 52 oz.
In a closed economy, what is the relationship between saving and investment?
A) Saving is greater than investment. B) Investment may be greater or smaller than saving. C) Investment is greater than saving. D) Investment is equal to saving.