Your Textbook Discussed a Model of a Simple Economy with Four

question 16

Multiple Choice

Your textbook discussed a model of a simple economy with four markets: labor, capital, energy, and food. Which of the following statements is inconsistent with a general equilibrium for this simple economy?

• A)The household demand for energy equals the industry supply of energy.
• B)The household demand for food equals the industry supply of food.
• C)The household demand for labor equals the industry supply of labor.
• D)The household supply of capital equals the industry demand for capital.

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Definitions:

Negative Concept

An idea or category defined by the absence of certain attributes or qualities rather than the presence of them.

Logical Definition

A precise description that aims to outline the essence of a concept by delineating its necessary and sufficient conditions.

Vague

Lacking in clarity, specificity, or precision, often intentionally or due to insufficient detail.

Obscure

Difficult to understand or unclear due to being complex or not explicitly stated.