The Economist Who Argued That Most Prices in Our Mixed

question 117

Multiple Choice

The economist who argued that most prices in our mixed economy are set by the nation's largest corporations was

• A)Adam Smith
• B)Karl Marx
• C)John Maynard Keynes
• D)John Kenneth Galbraith

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Definitions:

Equilibrium Value

The point at which the quantity of a good or service demanded equals the quantity supplied, resulting in market stability.

Opportunity Cost

Whatever must be given up to obtain some item.

Holding Currency

The practice of keeping money in the form of cash or liquid assets as opposed to investing or depositing it.

MPC

Marginal Propensity to Consume refers to the proportion of an increase in income that gets spent on consumption of goods and services, as opposed to being saved.