Which of the following is a main characteristic of exchanges in the market system?
A) Decisions to trade are based on individuals' self interest.
B) Exchanges are highly regulated by the government.
C) Sellers hire economists to determine the market clearing price.
D) Exchanges are part of the legislative imperative.
A
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Which of the following is likely to cause flour mills to increase their demand for labor?
A) A decrease in the wage rate B) An increase in the wage rate C) An increase in the price of bread D) A decrease in the price of flour products
During an economic slump, policies that lower interest rates may not actually boost investment because
A) lower interest rates tend to discourage investment, all other things unchanged. B) investment is never affected by interest rate changes. C) of pessimistic expectations by businesses about the future of the economy. D) taxes may have been decreased during a recessionary period.