What role does freedom play in capitalism? How important is it to the operation of a competitive market economy?
Please provide the best answer for the statement.
In capitalism, two essential freedoms are the freedom of enterprise and freedom of choice. Business must be free to get economic resources, organize them to produce products, and sell them in the market. Businesses must also be free to enter or leave an industry. Freedom of choice gives business owners, resource owners, and consumers’ freedom to act to advance their own self-interest. Business owners are free to buy and sell property. Labor resources (workers) can enter or exit any line of work for which they are qualified. Consumers are free to purchase goods and services as they choose based on their budget constraints. Without these freedoms it would be impossible for a market economy to exist.
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There seems to be a correlation between the neighborhood in which people grow up and their economic prospects
Indicate whether the statement is true or false
Typically when firms talk about depreciation they are usually referring to the deprecation of physical capital assets. However, how any why might it be possible for there to be deprecation in human capital?
What will be an ideal response?
Jerry has $50,000 in his savings account and the average new car price is $23,000. Does Jerry have a demand for a new car?
A) Yes, since Jerry can afford a new car. B) Not necessarily. Jerry has the ability to buy a new car, but we don't know if he also has the willingness to buy a new car. C) Yes, since Jerry's savings is more than double the average new car price. D) none of the above
Along a bowed-out production possibilities frontier, as more of one good is produced,
a. the opportunity cost of producing that good remains constant b. the opportunity cost of producing that good decreases c. efficiency decreases d. the opportunity cost of producing both goods must remain constant e. technology remains constant