What is a laissez-faire economy?
What will be an ideal response?
A laissez-faire economy is one in which individuals and firms pursue their own self-interests without any central direction or regulation.
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The difference between private cost and social cost is that
A) social cost only considers the external cost borne by society. B) social cost only considers the cost borne by people other than the producer. C) private cost only considers the cost borne by producers of the good. D) social cost also includes any external benefit whereas private cost excludes all external benefits. E) There is no difference; the terms refer to the same cost.
“Circuit breaker” rules halt trading when the Dow declines below its previous day’s closing value by a percentage amount for
A. one hour. B. two hours. C. the remainder of the trading day. D. All three of these periods.
Standard and Poor’s gave mortgage-backed securities a ______ rating.
a. AAA b. BBB c. C d. D
When a second firm enters a monopolist's market,
A. the market price will rise. B. the quantity produced by the first firm will decrease. C. the first firm's profits increase. D. All of these will occur.