How does a market system prevent people from getting as many goods and services as they wish?
A) In a market system, firms can charge any price they want, thus preventing poor people from getting as many goods and services as they wish.
B) Governments interfere with the market mechanism to influence the allocation of goods and services.
C) The market system allocates goods and services to those who are able to pay for those products and therefore income is a limiting factor.
D) The government imposes taxes on those who earn beyond a certain amount of income.
C
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If the absolute price elasticity of demand is equal to 1 in the short run, then in the long run, other things being equal, the absolute price elasticity of demand will be
A) less than one. B) less than zero. C) greater than one. D) equal to zero.
According to the political business cycle theory, if the Fed wanted to see a President re-elected, prior to the election it might
a. lower the discount rate and sell bonds. b. lower the discount rate and buy bonds. c. raise the discount rate and sell bonds. d. raise the discount rate and buy bonds.
Which of the following had prompted the Chinese authorities to stand ready to buy or sell dollars steadily and in large volume?
A. Huge current account deficit B. Currency pegged to the dollar C. Floating rate policy D. Adherence to the old gold standard
In statistical discrimination:
A. The average characteristics of the group are applied to individual members B. The characteristics of individual members of a group are applied to describe the group as a whole C. Hiring characteristics for workers are based on set government requirements D. Workers are given preferential treatment if they help fulfill a quota for a particular type of characteristic