In a market-based economy, the government
A) allocates production. B) enforces property rights.
C) encourages insurance risk. D) decides how much to produce.
B
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Who ends up paying when sunk costs are incurred as a result of erroneous forecasting?
A) No one pays them because they are sunk. B) The consumer, because they eventually show up as higher prices. C) The government, since they fall evenly on the entire community. D) The taxpayer, because they produce a decline in assessed valuations. E) Whoever invested in the unsuccessful project.
According to monetary theories of the business cycle, fluctuations are
a. independent of the banking system. b. more prevalent in countries with modern banking systems. c. more prevalent in agricultural countries. d. less prevalent in those countries with modern banking systems.
Economic resources used in the production process are called:
A) free gifts of the natural environment. B) factors of production. C) consumer items. D) money capital.
Refer to Figure 1.7. Which of the following points show unemployment of resources above the normal rate?
A. N. B. H. C. D. D. J.