The legal system provided by the government is necessary for the smooth working of markets because
A. it defines and protects property rights.
B. it keeps criminals off of the streets.
C. it is set up in the U.S. constitution.
D. it ensures that producers maximize their profits.
Answer: A
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Which type of regulation applies to all firms in the economy, as opposed to only covering specific industries?
A) economic regulation B) social regulation C) rate regulation D) statutory regulation
The prisoner's dilemma is a game of strategy:
A. in which people make rational choices that lead to a less-than-ideal result for all. B. in which people make rational choices that lead to the ideal result for all. C. that leads everyone to be as well off as possible without making another worse off. D. that leads people to make irrational choices that lead to the ideal result for all.
Ignoring all other goods, if Yong's marginal utility per pound of bread is 10 utils and per pound of cheese is 30 utils, his
a. total utility would be maximized if the price per pound of cheese is triple the price per pound of bread b. total utility could be increased by buying more bread and less cheese c. total utility could be increased by buying more cheese and less bread d. total utility would be maximized if the price per pound of cheese is one-third the price per pound of bread e. marginal utility would be maximized if the price per pound of cheese is one-third the price per pound of bread
Which of the following is a certificate of indebtedness?
a. stocks and bonds b. stocks but not bonds c. bonds but not stocks d. neither stocks nor bonds