The market system's answer to the fundamental question "What will be produced?" is essentially:
A. "Goods and services that are profitable."
B. "Low-cost goods and services."
C. "Goods and services that can be produced using large amounts of capital."
D. "Goods and services that possess lasting value."
Answer: A
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Which statement is not consistent with Joseph Schumpeter's hypothesis?
a. Monopolies use profit to invest in research and development. b. Monopolies end up being more efficient than competitive firms. c. Monopoly prices end up being lower than prices generated in perfect competition. d. Perfect competition is more conducive to innovation than monopoly. e. Perfect competition is more efficient than monopoly.
Which of the following is the most important protection against fears of bank collapse?
A. the Federal Reserve B. the Federal Reserve Open Market Committee C. the Federal Deposit Insurance Corporation D. the gold and silver that backs Federal Reserve notes
The function of money that allows individuals a method to compare the relative value of goods and services is
A. liquidity. B. store of value. C. medium of exchange. D. unit of accounting.
A tariff is a
A. voluntary limit on sales of a foreign product in the domestic market. B. tax on sales of a foreign product in the domestic market. C. regulation of the quality of a foreign product sold in the domestic market. D. legal limit on sales of a foreign product in the domestic market.