why market economies usually do a better job than command economies at efficiently transforming economic resources into desirable output.

Smith points out the possibility of producers contriving to raise prices. Are there other problems with the free-market system that he did not point out?

Why does the laissez faire approach to economic policy imply only minimal government involvement? When does it make sense for the government to intervene in a perfectly competitive market setting?

An organization monopolizes the market for maple syrup in order to substantially increase the price of their product. On a production possibility curve with the main good on the horizontal axis, this change would be shown by: A movement outside the curve causing allocative inefficiency A shift in the entire curve to the left A shift in the entire curve to the right. A movement inside the curve causing allocative inefficiency

In a market-based economy, how may governmental policies or regulation impact the inputs market? They can affect workers' willingness to work or firms' willingness to hire. They can affect consumers' willingness to buy They can affect consumers' willingness to buy or firms willingness to produce. They can affect firms' willingness to produce. They can affect workers' willingness to work. They can affect firms' willingness to hire.

To what extent are free markets morally justified? In your answer, you may want to be clear about the difference between the welfare-based and freedom-based arguments in support of free markets.