Which of the following statements about markets is false?
a. markets are used to allocate resources in market systems
b. markets can vary in geographical size
c. prices are used to allocate goods in markets
d. markets are used to allocate resources in centrally-planned socialist economic systems
e. supply and demand explains how prices are set in competitive markets
D
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Suppose that the required reserve ratio is 20 percent and you deposit $50,000 of currency into Comerica Bank
What is the potential increase in deposits in the banking system brought about by your deposit? What is the potential change in the money supply?
If the price of good X (measured on the horizontal axis of a budget line diagram) increases at the same time that the price of good Y (measured on the vertical axis) increases, the budget line
a. will necessarily become steeper b. will necessarily become flatter c. will remain unchanged d. will shift outward in a parallel fashion e. could become either steeper or flatter, depending on the sizes of the price changes