Flashcards in quiz 3 Deck (10):
Economics is based on the questions of how people deal with:
Markets require one on one negotiation. That is, the grocery store or Wal-Mart does not count as a market.
Adam Smith argued the markets require ______ if they are to work correctly:
If the demand for a good rises, both the equilibrium price and quantity should rise.
Adam Smith believed that:
markets usually give the right answer, but sometimes they fail
The purchase of clothes made in Viet Nam would appear in the US balance of payments in the _____ account.
There are billions of dollars of error every year and for almost every country in the calculation of the balance of payments.
From World War II to the 1970s, the world used:
fixed exchange rates
China keeps the dollar from ______ against the Yuan.