Laissez-Faire or Pure Capitalism?
What will be an ideal response?
Private ownership of resources, use of market system as a coordinating mechanism, passive role for government limited to protecting private property and establishing a legal environment
(Major changes in 1930's after great depression)
You might also like to view...
In the U.S. balance of payments, purchases of foreign assets by U.S. residents are tabulated as a:
a. unilateral transfer. b. capital outflow. c. current account outflow. d. capital inflow.
In 1975 a pocket calculator cost more than $50; in 1990 a calculator of the same quality cost less than $10 . Which of the following explanations is most consistent with these facts? a. Intense competition in the calculator industry caused the supply curve for calculators to shift to the left, depressing the price. b. An increase in the demand for calculators led to the price drop
c. An improvement in technology caused the supply of calculators to increase, depressing their price. d. As the population grew, fewer expensive calculators were needed, causing prices to fall.
If firms in an oligopoly market choose to not cooperate with each other, they end up earning higher profits for all
a. True b. False Indicate whether the statement is true or false
International trade can have important effects on the distribution of income because
A) some resources are immobile in the short run.
B) of government corruption.
C) the more powerful country dictates the terms of trade.
D) rich countries take advantage of poor countries.
E) different countries use different currencies.