The laissez-faire free-market system is
A. an ideal of perfection.
B. one that leaves no room for improvement.
C. unmatched by any other system for allocative efficiency.
D. All of the responses are correct.
Answer: C
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The above table gives the market demand and market supply schedules for soda. What is the maximum price consumers are willing to pay for the 400th can of soda?
A) $0.80 per can B) $0.70 per can C) $0.60 per can D) $0.50 per can
The existence of lags prevents the instantaneous adjustment of the economy to policies changing aggregate demand, thereby strengthening the case for
A) supply-side policy. B) nonactivists. C) activists. D) demand-management policy.
Suppose that a small business takes in monthly revenue of $100,000 . Labor, rental, energy, and other purchased input costs are $70,000 . The owner/entrepreneur could earn $5,000 per month in another job, and the owner/entrepreneur could get a return of $5,000 each month if she sold her business and invested the net proceeds in a financial asset, such as a treasury bond. Which of the following
correctly describes her monthly economic profit? a. $100,000. b. $90,000. c. $70,000. d. $30,000. e. $20,000.
Suppose the United States government is successful in reducing the flow of drugs into the United States. What impact does this have on the supply and demand curves for illegal drugs. a. supply decreases, demand is unaffected, and price increases
b. demand decreases, supply is unaffected, and price decreases. c. demand and supply both decrease, leaving price essentially unchanged. d. supply decreases, demand increases, and price increases substantially.