Free Markets Coordinate Economic Activity in Such a Way as to Eliminate

question 96

True/False

Free markets coordinate economic activity in such a way as to eliminate the possibility of inflation or unemployment.

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Definitions:

Cross-Price Elasticity

A measure of how the quantity demanded of one good changes in response to a change in the price of another good.

Garlic Salt

A seasoning made from a blend of dried, ground garlic and table salt, often with an anti-caking agent to prevent clumping.

Substitutes

Goods or services that can be used in place of one another. When the price of one rises, the demand for its substitute is likely to increase.

Elastic

Describes a situation in which the supply or demand for a good or service is highly responsive to changes in price.