Statement I: Much of the Analysis of Supply and Demand

question 213

Multiple Choice

Statement I: Much of the analysis of supply and demand is based on the work of Alfred Marshall over a century ago.
Statement II: When Alfred Marshall compared the determination of price by supply and demand to the blades of a scissors,he was implying that one was no more important than the other in determining price.

• A)Statement I is true and statement II is false.
• B)Statement II is true and statement I is false.
• C)Both statements are true.
• D)Both statements are false.

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Definitions:

Net Exports

The value of a country's total exports minus the value of its total imports, representing the net trade balance.

GDP

Gross Domestic Product, the total value of all goods and services produced over a specific time period within a country’s borders.

Investment

The expenditure on capital goods including buildings, machinery, and equipment, intended to enhance future production or yield future returns.

Net Exports

The difference between a country's total value of exports and its total value of imports over a specific time period.