A simple linear demand function may be stated as Q = a - bP + cI where Q is quantity demanded, P is the product price, and I is consumer income. To compute an appropriate value for b, we can use observed values for Q and P and then set -b(P/Q) equal to the:

Your textbook argues that in a market system income is earned and "distributed"

A) in the process of its creation. B) as a result of the supply and demand for productive services. C) in ways that might not be considered "fair" in all cases. D) in all of the above ways.

Which of the following is a function that is performed by the Federal Reserve?

a) To clear checks. b) To keep inflation high. c) To keep employment high. d) To keep interest rates low.