The market-clearing price is:
a. the price at which the market is in equilibrium.
b. the price at which mutually beneficial trade take place.
c. the price at which sellers earn the maximum profit.
d. the price at which consumer surplus is zero.
A
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Which of the following statements is true?
A) A budget constraint is the same for a consumer at all levels of income. B) A budget constraint is a function of the income of the consumer and not the prices of the goods and services available for consumption. C) A budget constraint quantifies the trade-offs that economic agents face while making decisions. D) A budget constraint is based on the minimum amount of money that an economic agent can spend on goods and services.
The Keynesian point of view suggests that
A. supply creates its own demand. B. demand creates its own supply. C. the market is always at equilibrium. D. full employment is the natural result of market forces. E. wage and price controls can halt deflationary pressures.