The market system is an economic system that:
A. Produces more consumer goods than capital goods
B. Produces more capital goods than consumer goods
C. Gives private individuals the right to own resources used in production
D. Emphasizes the government's power to control markets and direct economic activity
Answer: C
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In the above table, the number of marginally attached workers is
A) 40 million. B) 55 million. C) 15 million. D) 100 million.
Economies of team production exist when the
A) average cost of producing a unit of a good falls as its output rate increases. B) firm buys parts or products from other firms. C) firm uses specialized resources to produce a range of goods and services. D) individuals in a group specialize in mutually supportive tasks in the production process.
The natural rate of unemployment
a. is due to cyclical business conditions. b. results from normal dynamic changes given the institutional arrangements of the economy. c. results from both frictional and cyclical economic conditions. d. is present when the economy is at the peak of an economic boom.
If a local ready-mix cement company is the only producer of cement in the local market, the monopoly power of the firm will
a. be small if entry barriers into the local market are high. b. depend on how many other sellers of similar products there are in the national market. c. be total since there are not any other sellers of the same product in the local market. d. be minimal if the entry barriers restricting competition from other firms are low.