The doctrine of laissez faire is based on the belief that
A. Government failure does not exist.
B. Markets result in an unfair distribution of income.
C. Markets are likely to do a better job of allocating resources than government directives.
D. Government directives are likely to do a better job of allocating resources than markets.
Answer: C
You might also like to view...
Refer to the graph shown depicting a monopolistically competitive firm. The marginal revenue curve is represented by curve:
A. A. B. B. C. C. D. D.
Consider firms operating in an industry where the own price elasticity of demand is infinite; that is, EQ,P = -?. Use this information to determine the type of industry in which these firms operate and the optimal advertising-to-sales ratio.
A. Monopolistic industry and 0 B. Perfectly competitive industry and 0 C. Perfectly competitive industry and ? D. Monopolistically competitive industry and ?
Suppose a monopolist faces the demand curve shown below. 
If the monopolist were to sell 20 units of output, its total revenue would be:
A. $1,000. B. $50. C. $100. D. $140.
A firm stands to gain by operating instead of shutting down as long as ________ sufficiently covers ________.
A. operating profit; economic profit B. total revenue; total fixed costs C. price; average variable cost D. price; average fixed cost