When the markets of an economy are more competitive, economic growth
a. is harmed by the resulting low rates of profit for industry.
b. is enhanced because producers have a stronger incentive to provide goods efficiently.
c. will be slower because prices do not rise as rapidly.
d. is unaffected.
B
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In a market economy, government decides the answers to the three economic decisions.
Answer the following statement true (T) or false (F)
As we move along the production possibilities frontier,
A) the production of one good increases as the production of the other good decreases. B) more of both goods can be produced. C) the possibilities of tradeoffs diminish. D) a tradeoff is not possible because nations need all goods. E) less of both goods can be produced.
The Clayton Act of 1914 was passed to prohibit, in part
A) price discrimination if the effect is to substantially lessen competition or create monopoly. B) unfair methods of competition and unfair or deceptive business practices. C) combinations, trusts, or conspiracies that restrict interstate or international trade. D) business practices that allow one firm to profit at the expense of another whenever the first firm is a monopoly.
Refer to Scenario 1 . What is the economic significance of 25 fish captured and 25 crabs captured?
What will be an ideal response?