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What role does the numeraire good play in determining relative prices in an economy?
The numeraire good serves as a reference point for determining the relative prices of other goods and services in an economy. It is used as a common unit of measurement to compare the value of different goods and services. By establishing a standard for pricing, the numeraire good helps facilitate trade and economic transactions by providing a consistent basis for evaluating the worth of various products and services.
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Are taxes that distorts relative prices neutral?
Taxes which distort relative prices are not neutral.
Who determines prices in a market economy?
in a market economy.. the prices are decided by demand and supply....or compention
What role do most markets in the economy play in determining overall economic activity?
Most markets in the economy play a significant role in determining overall economic activity by influencing the supply and demand of goods and services, which in turn affects prices, production levels, and employment. The interactions within these markets help to allocate resources efficiently and drive economic growth.
Inflation distorts relative prices. What does this mean and why does it impose cost to consumers?
Inflation distorts relative prices. What does this mean and why does it impose a cost on society?
In which type of economy would prices be set by the government?
command economy
What has the author Anders Olgaard written?
Anders Olgaard has written: 'The Danish economy' 'Growth, productivity and relative prices'
Are taxes that distorts relative prices neutral?
Taxes which distort relative prices are not neutral.
Who determines prices in a market economy?
in a market economy.. the prices are decided by demand and supply....or compention
What role do most markets in the economy play in determining overall economic activity?
Most markets in the economy play a significant role in determining overall economic activity by influencing the supply and demand of goods and services, which in turn affects prices, production levels, and employment. The interactions within these markets help to allocate resources efficiently and drive economic growth.
Inflation distorts relative prices. What does this mean and why does it impose cost to consumers?
Inflation distorts relative prices. What does this mean and why does it impose a cost on society?
In which type of economy would prices be set by the government?
command economy
What does gas prices destroy?
the economy
What is different about interest rates or price credit from other prices in the economy?
what is different about interest rates, or price of credit, from other prices in the economy
How is oil important to Venezuela econonmy?
Venezuela's oil-based economy illustrates the affects of overspecialization. When oil prices are high, its economy is strong. When oil prices drop, its economy weakens.
What is the effect on the when the economy is in decline?
prices rise
Prices in a market economy determine?
Prices in a market economy help determine the equilibrium. Consumers will not pay a price higher than its perceived value.
What is an economy that experiences decreasing real GDP and increasing prices suffering from?
An economy that experiences decreasing real GDP and increasing prices suffering from stagflation.
