The textbook defines a "well-organized" market as a market in which
A) all information available to sellers and buyers is also available to other parties to exchange transactions.
B) bids and offers of buyers and sellers are brought together to establish a single price over a wide area.
C) the government regulates maximum and minimum prices.
D) the terms of exchange between buyers and sellers are controlled by a professional marketing association.
Answer: B) bids and offers of buyers and sellers are brought together to establish a single price over a wide area.
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Beer and wine were difficult to find during the prohibition on alcohol, but whisky and gin were plentiful. Why?
A) Beer and wine were illegal; whisky and gin weren't. B) The drinking public only wanted whisky and gin. C) Criminals found it much more efficient to produce liquor. D) Police were willing to overlook production and consumption of whisky and gin because they believed liquor was less dangerous than beer and wine. E) Government officials were interested in seeing what would happen to rate of alcohol poisoning in the United States.
If GDP is more than GNP, we know with certainty that
A) a budget deficit exists. B) a trade surplus exists. C) a trade deficit exists. D) none of the above