What determines the price and the quantity produced of most goods?
a. the consumer's perception of necessity
b. the interaction of supply and demand
c. the quality of the goods that are produced
d. the availability of substitutes for the goods
Ans: the interaction of supply and demand
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Describe some of the steps used to combat inflation. What are their side-effects?
An analysis of market failure and government failure indicates
What will be an ideal response?
The set of mechanisms and institutions that resolve the questions of what, how, and for whom goods are produced is called the _____
a) automatic stabilizer mechanism. b) business resolution device. c) circular flow model. d) multiplier mechanism. e) economic system.
Protectionism is the view that free trade is ________ and should be ________.
A. helpful; encouraged B. harmful; restricted C. inevitable; allowed D. illegal; forbidden