In a market economy, entrepreneurs are most concerned with:
a. Maximizing utility or satisfaction from limited incomes
b. Increasing the wages and salaries of workers
c. The unselfish pursuit of national welfare
d. Maximizing profits or minimizing losses
d. Maximizing profits or minimizing losses
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When institutions do not protect private property rights, do not uphold contracts, interfere with the working of markets and instead erect significant barriers into businesses and occupations, they are referred to as:
A) transitive economic institutions. B) extractive economic institutions. C) inclusive economic institutions. D) exclusive economic institutions.
Inflation targeting requires that the central bank
A) publicize its targeted inflation rate. B) avoid changing the amount of the monetary base. C) use a short-term interest rate as its policy instrument. D) set a fixed price real assets. E) adopt a k-percent rule for the inflation rate. The figure above shows the market for reserves.
The concept of Say's law can be summed up by the phrase,
A) "supply creates its own demand." B) "demand creates its own supply." C) "supply and demand are equivalent concepts." D) "supply and demand are irrelevant concepts."
Economists study perfect competition
A. because many markets are perfectly competitive. B. for its descriptive realism. C. to establish a benchmark by which to measure the performance of the economy. D. All of the responses are correct.