What, according to economist Donald Boudreaux in the "Last Word" section of the chapter, best explains why the market system is not a random, chaotic mess?
A. There is active cooperation among private property owners and government officials to correct the excesses of a market economy
B. The roundabout methods of production allocate resources from consumers to producers in an orderly fashion
C. Government planning limits the chaos, and the government regulates economic activity to create stability in the market
D. Private property rights encourage mutual accommodation that leads to an arrangement of resources that is productive
Answer: D
You might also like to view...
Devastating damage resulting from a major earthquake and tsunami will most likely
A) initially move a country to a time path beneath its balanced growth path. B) move a country to a lower point on its balanced growth path. C) shift the balanced growth path for a country to a new, lower level. D) have little to no impact on the short-term growth rate in a country.
NOW (negotiable order of withdrawal) accounts
A. are really just interest-bearing checking accounts under a different name. B. cannot earn interest. C. can only be issued by commercial banks. D. can be issued by most insurance companies and real estate agencies.
The demand for normal goods
A. Falls when incomes rise. B. Rises when incomes rise. C. Rises when incomes fall. D. Shifts to the right when incomes fall.
Based on Figure 6.1, suppose the government puts a tariff of $0.25 per bushel on soybean imports. How much will the tariff reduce imports?
A) Imports will decrease by 10 million bushels. B) Imports will decrease by 20 million bushels. C) Imports will decrease by 60 million bushels. D) Imports will not change after the tariff.