The economic role of the legal system might best be described as
A) promoting the productive efficiency of competitive markets.
B) identifying and producing public goods.
C) establishing the "rules of the game" and acting as a referee when disputes arise among market participants.
D) identifying and producing merit goods.
Answer: C
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Which of the following would be a macroeconomic question?
A) How has the price of gold increased over time? B) How has the number of commercial airline flights decreased over time? C) How have the retirement benefits in the auto industry changed over time? D) How has inflation increased over time?
If someone buries money in a tin can beneath a tree, the money is functioning as a
A) medium of exchange. B) unit of account. C) means of payment. D) store of value. E) bartering tool.
Figure 10-8
If the economy were operating at point a in , the real rate of interest would tend to
a.
decrease and move the economy toward point c.
b.
decrease and move the economy toward point b.
c.
increase and move the economy toward point c.
d.
increase and move the economy toward point b.
For a monopolistically competitive market, the number of firms in the market implies that
A) each firm faces a perfectly elastic demand. B) all firms will make losses. C) each firm acts independently of other firms. D) firms will collude to set monopoly price and output.