A. Market forces of supply and demand
B. The government
C. The law
D. The public Sector
Related Mcqs:
- If a producer has market power (can influence the price of the product in the market) then free market solutions ?
A. are equitable.
B. are efficient
C. maximize consumer surplus
D. are inefficient - The whole class of goods that will be under produced or not produced at all in a completely unregulated market economy are referred to as ?
A. Pareto goods
B. public goods
C. private goods
D. free goods - Any combination of products inside the production possibility frontier is ?
A. Allocatively inefficient
B. X inefficient
C. Consumer inefficient
D. Productively inefficient - If a market generates a side effect or externlity then free market solutions ?
A. maximize producer surplus
B. are efficient
C. are inefficient
D. are equitable - There is a decentralized market where geographically dispersed dealers are linked by telephones and computer screens. The market is for securities not listed on a stock or bond exchange. Name the market ?
A. Grey market
B. Over-the counter (OTC)
C. Open market
D. Back market - If all firms in a market have identical cost structures and if inputs used in the production of the good in that market are readily available, then the long-run market supply curve for that good should be ?
A. downward sloping
B. perfectly inelastic
C. upward sloping
D. perfectly elastic - The normal rate of profit for relatively risk-free firms will be _________ the interest rate on risk-free government bonds?
A. approximately one-half
B. smaller than
C. larger than
D. approximately equal to - The asset market approach views exchange rates as being determined mainly by ?
A. the use of import tariffs and quotas by governments
B. the current account balance of each country
C. the relative growth rate of national output between countries
D. efforts of investors to balance their portfolios among financial assets denominated in different currencies - In a free market?
A. government intervenes
B. government plan production
C. government interferes
D. Prices adjust to reconcile scarcity and desires - Income inequality can be high in the free market and should be reduced This is an example of What ?
A. Judicial economic statement
B. Positive economic statement
C. Formative economic statement
D. Normative economic statement
