There are several advantages that a market economy possesses. These do not include the fact that market economies:
A) tend to result in high living standards.
B) tend to encourage greater economic growth.
C) tend to prevent entrepreneurial activity that would result in large accumulations of wealth in the hands of a few people.
D) none of the above is true
Ans: C) tend to prevent entrepreneurial activity that would result in large accumulations of wealth in the hands of a few people.
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The Reagan administration's experiment with supply-side economics produced a historic period of economic expansion that was accompanied by:
a. falling real interest rates. b. high unemployment rates. c. a dramatic increase in the federal government's budget deficit. d. a reduction in the U.S. trade deficit. e. All of the above.
Lucy and Lincoln are salespeople working for the same company with equal skills, ability, and experience. Both are paid a small base salary but the majority of their compensation is in the form of a commission, which is a percentage of the sales they make. Lucy earns more each year than Lincoln. What can you conclude about Lucy and Lincoln?
Consider the game above. at the mixed strategy equilibrium, the probability that player 2 assigns on Z =
