Each of the following statements describes how the political and legal environment encourages productivity except:
A. Price changes in markets give suppliers incentives to supply goods to markets.
B. Pay rates determined by a governmental planning agency provide workers with incentives to work hard.
C. Well-defined property rights encourage production and saving.
D. Political stability promotes economic growth.
Answer: B
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Which branch of study helps in economic decision making when an individual's behavior determines the payoffs to others?
A) Microeconomics B) Macroeconomics C) Game theory D) Public economics
Consideration of the minimum efficient scale of operation would suggest that, to minimize production costs, the market should be served by a large number of small firms when the LRAC curve slopes downward over the relevant range of output
Indicate whether the statement is true or false
Farm prices fell sharply in 1919–21 . Then, until 1929, the farm "terms of trade" (the movement of farm prices relative to the movement of non-farm prices)
(a) collapsed by more than half. (b) remained essentially unchanged. (c) actually rose. (d) collapsed, but only slightly.
According to the Keynesian interpretation of the 1930's, the main reason we still had double digit unemployment in 1939 was that
a. interest rates were too high. b. federal budget deficits were too small. c. the stock of money was too small. d. investment spending was too high.