A free market is described by which of the following statements? a. Decisions are centralized b. The government does not set or influence market prices in any way. c. Inputs are free to sellers. d. The price of outputs is controlled by the government.
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- In a competitive free market: Select one: A. the government does not impose price controls. B. there is no provision for the protection of property rights. C. there is only one seller and many buyers. D. all exchanges take place involuntarily.Which of these statements does not apply to market economies? a. Prices influence how much of a good buyers choose to purchase and how much sellers choose to produce. b. Prices ensure that anyone who wants a product can get it. c.Prices ensure that quantity supplied and quantity demanded are in balance. d. Prices guide economic decisions and thereby allocate scarce resources.The forces that make market economies work are a.price and quantity. b.demand and supply. c.the Senate and House of Representatives. d.the Constitution and the Bill of Rights.
- What mechanism guides the invisible hand? A. Price Mechanism B. Trust C. External Costs D. Market Failure What forces business firms to be as efficient as possible so they can charge the lowest price? A. Property Rights B. Externalities C. Competition D. Capitalism Capitalism is based on:A. Command-and control Regulations B. Trust C. Market Failure D. Government InterventionWhich of these statements does not apply to market economies? Select one: a. Prices influence how much of a good buyers choose to purchase and how much sellers choose to produce. b.Prices guide economic decisions and thereby allocate scarce resources. c.Prices ensure that quantity supplied and quantity demanded are in balance. d.Prices ensure that anyone who wants a product can get it.What is the incentive for producers to produce in a free market? Why is it so important?
- What is a market?a. Name five types of markets in which you participate.b. What markets trade economic resources?What is commodity A.something that producers unable to sell to consumers B.A resource that is available in unlimited quantities C.An exchange between a producer and a consumer D.something of value that can be bought sold or tradedThe basic principles of economics suggest that a. markets are seldom, if ever, a good way to organize economic activity. b. government should become involved in markets when trade between countries is involved. c. government should become involved in markets when those markets fail to produce efficient or fair outcomes. d. All of the above are correct.
- The miracle of markets A. occurs when consumers and businesses make self - interested smart choices based on prices. B. is that consumers and businesses learn about each other's personal wants and production capabilities. C. is that businesses are free to set any prices they choose D. is none of the aboveabove.Under a market system of resource allocation A. prices determine what consumers buy while the government determines what firms produce B. prices determine what firms produce while the government determines what consumers buy C. prices determine both what firms produce and what consumers buy D. the government allocates resources while prices allocate goods and servicesAdam Smith's invisible hand refers toa.the subtle and often hidden methods that businesses used to profit at consumers' expenseb.the ability of free markets to reach desireable outcomes,despite the self interest of market participants.c.the ability of government regulation to benefit consumers,even if the consumers are unaware of the regulations.d.the way in which producers or con sumers in unregulated markets impose cost on innocent bystanders.