Which of the following is true?
a. Markets determine what goods are going to be produced, but not the distribution of output among members of society.
b. Markets determine the distribution of output among members of society, but not what goods are going to be produced.
c. Markets determine both what goods are going to be produced and the distribution of output among members of society.
d. Government can redistribute income without changing what will be produced in a society.
c
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An ideal pollution control policy: a. would reduce pollution to zero
b. would reduce pollution to the socially efficient level. c. discourage firms from wasting time developing abatement technologies. d. reduce pollution as quickly as possible, regardless of the cost.
Pollution taxes are intended to
A. reduce the budget deficit. B. incentivize firms to cut their pollution. C. reduce welfare of polluting firms. D. raise deadweight loss.
Which of the following produces external benefits?
A. College students getting vaccinated against the flu. B. Passive smoke in a public building. C. Garbage dumped in the Atlantic Ocean. D. All of the choices are correct.
In a monopolistically competitive market there are
A. many firms producing totally different products. B. many firms producing similar but not identical products. C. many firms producing an identical product. D. few firms producing identical products.