Which of the following is the most important pre-requisite to a well-functioning market economy?
A) Goods must be non-scarce.
B) Everyone must have an adequate income.
C) Participants must follow some clear, general rules.
D) People must have roughly similar tastes and preferences.
E) There must be approximate equality of incomes.
C
You might also like to view...
Define "autonomous consumption spending."
What will be an ideal response?
The supply curve indicates the minimum quantity that a producer would be willing to supply at alternative prices
Indicate whether the statement is true or false
Which of the following statements refers to rent seeking?
A) "The role of the federal government in the U.S. economy grew significantly after the Great Depression. Government spending and taxes are a much greater proportion of total income today than they were in 1929." B) "Laws passed by the federal government often provide benefits for a small number of individuals. These individuals, in turn, have an incentive to contribute to the campaigns of politicians who pass these laws." C) "The federal government should spend more money on programs that help low income citizens and less money on national defense." D) "There is an opportunity cost whenever the federal government spends tax revenue. For example, an additional $1 billion spent on national defense means there will be less revenue for highway construction and maintenance or some other program."
Ceteris paribus, a decrease in the U.S. price level will cause
a. an increase in U.S. exports. b. an increase in U.S. imports. c. the aggregate demand curve to shift to the right. d. the aggregate demand curve to shift to the left.