In a market economy, differences in incomes will
a. reflect the relative scarcity of resources.
b. provide individuals with an incentive to supply resources that are valued by others.
c. determine the income distribution among market participants.
d. do all of the above.
D
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If the domestic producers of a good benefit from free trade, it suggests that the country:
A. is a net importer of that good. B. does not have an absolute advantage in that good. C. does not have a comparative advantage in that good. D. is a net exporter of that good.
What does the U.S. business cycle experience suggest about periods of war?
A) the economy tends to boom during the period of war B) after the war is over, the economy typically experiences a downturn C) they are associated with good economic times D) all of the above E) none of the above
In an increasing-cost industry, the long-run market supply curve is
a. horizontal b. vertical c. upward sloping d. downward sloping e. nonexistent
A cartel most likely forms in
A. an oligopolistic market. B. a heavily regulated industry. C. a perfectly competitive market. D. a monopolistically competitive market.