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mote1985 [20]
4 years ago
8

According to classical economic theory, a market economy: Select one: a. is self-regulating b. will automatically adjust to the

natural unemployment rate c. will automatically adjust to Natural Real GDP d. All of the above
Business
1 answer:
abruzzese [7]4 years ago
3 0

Answer:

A. Is self regulating

Explanation:

The fundamental theory of the classical economy is that the market economy is self regulating. The classical economists believe that an economy is always capable of achieving real GDP, that is GDP when resources are fully employed. And that, time to time, when GDP falls below or exceed the real GDP, the market economy has self-adjustment mechanisms to bring it back to the real GDP level. Classical economists believes in self regulating democracies and capitalistic market developments.

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Answer:

FTC: prohibits deceptive practices and provides information about choosing products

SEC: prohibits insider trading and regulates brokers and investment advisers

8 0
3 years ago
A firm has a _____ when its goods are made more valuable in the presence of those of another firm
blagie [28]

Answer:

The correct word for the blank space is: complement.

Explanation:

A good or service that is used in conjunction with another good or service is a complement. Companies and economists study complementary goods to understand consumer decisions and buying patterns. Complementary goods have little to no value when they are consumed alone but when combined with another good or service both benefit through added value.

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If you are an equity investor how do you make money from your investment?
denis23 [38]

Answer:

(C) Selling the investment for more than you paid for it.

Explanation:

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4 0
3 years ago
Assume the global economy consists of just two trading partners, the United States and Europe. Determine whether each scenario b
lyudmila [28]

Answer:

United States and Europe

Determination of United States having a trade deficit, balanced trade, or a trade surplus:

a. Trade surplus (investment surplus)

b. No effect on trade surplus or deficit

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f. Balanced trade

Explanation:

The United States experiences a trade surplus when its exports to Europe is higher than the imports from Europe, whether it is for goods, services, or investments.

On the other hand, the United States will experience a trade deficit when its imports from Europe are more than its export to Europe.

The US and Europe will have some advantages and disadvantages to having a trade deficit or surplus.  When the US experiences a surplus, the exchange rate between the two continents increases in favor of the US.  However, there will a reduction of the competitiveness of the US exports as higher prices will be incurred by Europe for US exports.

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3 years ago
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Disposable income Im pretty sure that is it
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