A free market is a market:
A) that has price controls imposed by a ruling authority.
B) where almost all exchanges take place involuntarily.
C) where determination of equilibrium quantity is free from the forces of demand and supply.
D) that operates with little or no government control.
D
You might also like to view...
In most less developed countries, the initial target of import substitution is to promote domestic production of
(a) consumer goods. (b) food and other agricultural goods. (c) capital goods. (d) manufactured intermediate goods.
Which of the following was NOT part of the financial deregulation of the 1970s and 1980s?
A) Banks could pay interest on checking accounts. B) Banks could issue checkbooks for savings accounts. C) Institutions other than banks could offer money-market mutual funds, from which checks could be written. D) All of the above were part of the deregulation.
The relationship between average and marginal variables can be stated as follows: if the marginal is greater than the average,
a. the average is increasing. b. the average is decreasing. c. the marginal is increasing. d. the marginal is decreasing. e. the total is decreasing.
Which of the following is the best example of market failure?
A. Alex and others in a community want a new outdoor soccer field and are willing to pay to use it, but no private business is willing to build it. B. Lucian wants more video games but doesn't buy them because his willingness to pay is less than the equilibrium price in the market. C. Kara's Kitten Shop won't sell more purebred cats because the equilibrium price in the market is less than it would cost her to provide more. D. Government fixes the price of gasoline, resulting in a shortage.