A market equilibrium will generate the largest possible surplus when:
A. there are no external benefits and external costs.
B. there is perfect competition.
C. perfect information is available.
D. All of these.
Answer: D
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In economics, the purpose of competition is to:
A. ensure that every firm survives. B. motivate firms to make the highest possible profit. C. prevent unemployment. D. motivate firms to make better goods at lower cost.
An example of third-party financing of health care is
A. patients paying for their visit to the doctor. B. Medicare. C. patients not going to the doctor in order to save money. D. a patient going to another doctor for a second or a third opinion.
The market environment heavily influences corporate decision-making ability. Discuss the differences in executive decisions concerning pricing, product design, and advertising between a company that exists in a perfectly competitive market and a company in a monopolistically competitive market.
What will be an ideal response?
The right to openly support and democratically select national leaders is
A) political freedom. B) capital freedom. C) population freedom. D) economic freedom.