The market mechanism may best be defined as
A. The use of market signals and government directives to select economic outcomes.
B. The process by which the production possibilities curve shifts inward.
C. The use of market prices and sales to signal desired output.
D. Price regulation by government.
Answer: C
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Which of the following is NOT an example of price discrimination?
a. A restaurant sets a fixed cover charge in addition to menu charges. b. A phone company charges different rates to residential and business users. c. An electric company charges different rates to senior citizens and younger adults. d. An airline sets different fares for adults and children.
Monopolies tend to
A) hire more labor than duopolists or competitive firms, hence they are inefficient. B) hire more labor than competitive firms but less than duopolists. C) hire less labor than competitive firms because they produce at an inefficient level. D) hire more labor because they produce at an inefficient level.
Given a market equilibrium point, explain, using the concepts of demand and supply, how it is achieved
What will be an ideal response?
Which of the following is an example of trade policy at the regional level?
a. Congress passing legislation to prevent dumping. b. The European Union adopting a common currency c. The World Trade Organization holding a round of negotiations in France. d. The General Agreement on Tariffs and Trade being made.