Which scenario is LEAST LIKELY to occur in a market economy?
A) The government pays farmers to stop planting certain crops for a period of time.
B) The government stops a factory from producing imitations of an expensive type of purse.
C) The government offers tax breaks to companies that meet efficiency goals in their products.
D) The government allows only two competitors to offer goods for sale on the country's highways.
Answer: D) The government allows only two competitors to offer goods for sale on the country's highways.
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If Greece chose to abandon the euro and the Greek government decided to exchange euro bank deposits for drachmas, the affected bank depositors would suffer losses if the
A) euro then appreciated. B) euro then depreciated. C) drachma then appreciated. D) drachma then depreciated.
The current account shows transactions in goods and services; the capital account shows purchases and sales of assets; and the official reserve transactions account shows movement of international reserves
a. True b. False
Which of the following is NOT a transfer payment?
A) Medicare B) Social Security retirement payments C) Social Security disability payments D) spending on national defense
The firm in a perfectly competitive industry is a
A) price taker. B) price maker. C) price seeker. D) price dealer.