Adam Smith’s book, The Wealth of Nations,
a) Argued in favor of using political forces to allocate resources.
b) Argued in favor of allowing markets to allocate resources.
c) Supported a policy of government intervention into the economy
d) All of the above are correct.
Answer: b) Argued in favor of allowing markets to allocate resources.
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Under what conditions does an oligopoly market result in the same outcome as perfect competition? What does this imply for the oligopoly's long-run profits?
What will be an ideal response?
Interlocking directorates are:
A. legal if the two firms have small market shares. B. illegal under provisions of the Federal Trade Commission Act of 1914. C. illegal under provisions of the Celler-Kefauver Act of 1950. D. illegal under provisions of the Clayton Act of 1914.
As one is beginning to learn economics, one should expect to learn
A. everything one needs to become an economist. B. very little that will be useful in the real world. C. a new way of thinking about the world. D. the gross domestic product of every country in the world.
The above figure shows the market for buckets of golf balls at the driving range. A new leisure time tax is placed on suppliers in this market, shifting the supply curve from S0 to S1
The quantity of buckets without the tax is ________ and the quantity with the tax is ________. A) 400; 600 B) 600; 400 C) 400; 400 D) 800; 500 E) 600; 500