A critical function of the government in facilitating the operation of a market economy is
A) controlling the market prices of food items.
B) ensuring an equal distribution of income to all citizens.
C) producing goods and services for low-income households.
D) setting up and enforcing private property rights.
D
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Which of the following is true? i) A rational choice is made on the margin. ii) Microeconomics is the study of the national economy while macroeconomics is the study of the global economy. iii) Economists try to understand how the economic world works by testing normative statements.
A. Only ii B. i and ii C. Only iii D. i and iii E. Only i
A monopolist can charge any price it wants to for a product, because it has no competitors. What constrains price for a monopoly?
a. Demand b. Copyright c. Quality d. Quantity
Which of the following conditions during 2008-2009 most closely paralleled the economic conditions of the Great Depression?
a. record-high unemployment rates for a period of many years b. a sharp and prolonged contraction in the money supply c. significant increases in taxes and trade restrictions in order to counter budget deficits d. frequent policy changes that generated an unstable and unpredictable economic climate
Featherbedding allows unions to increase wages by:
A. limiting the supply of labor. B. increasing firms' demand for labor. C. forcing firms to accept higher-than-equilibrium wages. D. reducing labor share of payroll taxes.