The efficiency of market organization is dependent on which of the following?
a. well-regulated supply and demand
b. the availability of low cost resources and high tariffs on foreign imports
c. competitive markets and well-defined and enforced private property rights
d. Government establishment of the invisible hand principle and the inelasticity of certain goods.
C
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Refer to Figure 2-6. If the economy is currently producing at point D, what is the opportunity cost of moving to point B?
A) 60 thousand spoons B) 0 forks C) 16 thousand spoons D) 46 thousand forks
If the long-run supply curve is horizontal, we know that this is
A) a decreasing-cost industry. B) a constant-cost industry. C) an increasing-cost industry. D) a situation in which some input prices change as firms enter and exit the industry.
In a one-stage game:
A. at least one participant observes a choice by another participant before making some decision. B. each participant makes all of his choices before observing any choice by any other participant. C. at least one participant makes his choice before observing the choices made by other participants. D. one participant has full information of the other players' choices before making his choice.
When economists say the quantity supplied of a product has decreased, they mean the:
A. supply curve has shifted to the left. B. supply curve has shifted to the right. C. price of the product has risen, and consequently, suppliers are producing more of it. D. price of the product has fallen, and consequently, suppliers are producing less of it.