An example of an institutional requirement for the operation of effective private markets is
(a) enforcement of contracts.
(b) the ability of government to correctly project trends.
(c) the ability of advertisers to influence consumers.
(d) all of the above.
A
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The best alternative use of a resource is referred to as its:
A) sunk cost. B) market price. C) marginal utility. D) opportunity cost.
The value of money rises as the price level
a. rises, because the number of dollars needed to buy a representative basket of goods rises. b. rises, because the number of dollars needed to buy a representative basket of goods falls. c. falls, because the number of dollars needed to buy a representative basket of goods rises. d. falls, because the number of dollars needed to buy a representative basket of goods falls.
Policy makers should manage aggregate demand so that it grows in line with the economy’s capacity to produce. This task is the realm of
A. growth policy. B. stabilization policy. C. labor policy. D. inflation policy.
In perfectly competitive industries, firms can easily enter and exit the industry in the long run.
Answer the following statement true (T) or false (F)