Why has the free market system produced the most rapid rates of growth of any economic system?
The features of competitive markets put pressure on businesses to do everything they can to contribute to growth. Innovation in particular is used by firms to compete with one another. Innovation has been perhaps the major factor in the rapid rate of output growth.
You might also like to view...
Median household income in the United States has increased from $38,771 in 1967 to $51,017 in 2012. Based only on this fact, we can conclude that
A) Inequality is increasing in the United States. B) Inequality is decreasing in the United States. C) Inequality is not changing in the United States. D) We cannot conclude anything about inequality in the United States without more information.
Which of the following did not contribute to the increase in competition in the United States between 1958 and 1988?
a. antitrust activity b. deregulation of transportation industries c. deregulation of banking d. increased imports e. conglomerate mergers
For which of the following medical goods or services is the income elasticity of demand largest?
a. emergency services after a car accident b. measles shots c. physical examinations for life insurance applications d. medical tests to diagnose specific symptoms e. face-lifts
Which of the following is not a reason to expect the slope of a consumer's indifference curve for current and future consumption to be greater than 1 with an endowment along the 45° line?
a. People are naturally impatient. b. One is never sure if he will be alive in the future. c. A unit consumed today offers memories of consumption into the future. d. A decline in interest rates.