Here is an excerpt form an editorial praising capitalism in The Economist:“It is competition that delivers choice, holds prices down, encourages invention and service, and (through all these things) delivers economic growth.” To what type of competition does the writer refer? Is it the sort of competition that economists study? Explain.
What will be an ideal response?
The competition here seems to be monopolistic competition (because it allows choice) or perfect competition (keeps prices down). More broadly, it could be the competition that occurs whenever another firm enters a market and begins to compete. This points out the difference in what economists mean by “competition,” and what most others mean by the term.
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In 1995 ________, which was established in 1948, was replaced by ________
A) NAFTA; the Smoot-Hawley Tariff B) the WTO; NAFTA C) the GATT; the WTO D) the Smoot-Hawley Tariff; the GATT
The subject of economics is primarily the study of:
a. the government decision-making process. b. how to operate a business successfully. c. decision-making because of the problem of scarcity. d. how to make money in the stock market.
In a closed economy, the formula for public saving is: Sprivate = T + G + TR
a. True b. False Indicate whether the statement is true or false
Economies of scope are present when a bank also sells insurance and provides brokerage services for stocks and bonds
a. True b. False Indicate whether the statement is true or false