A form of economic organization that relies primarily on private ownership of productive assets, freedom of exchange, and market prices to allocate goods and resources is often called?
What will be an ideal response?
Capitalism.
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Common American re-exports of the Napoleonic War period included all of the following except:
a. cotton. b. sugar. c. coffee. d. spices.
Assume that the professors at a local college have gone without a pay increase for 4 years during a tough time. Suppose that things start to look up and the President of the college wants to make up for lost time. If the CPI in 2002 was 150 and 175 in 2006, how much will salaries have to increase to bring the faculty back up to their real income from 2002?
a. 175.0% b. 150.0% c. 25.0% d. 16.7% e. 14.3%
An increase in the real value of stock prices, which is independent of a change in the price level, would affect aggregate demand due to the:
A. foreign purchases effect. B. real-balances effect. C. wealth effect. D. interest-rate effect.
Is it true that in the long run, a monopolistically competitive firm has market power but earns no profit? Explain
What will be an ideal response?