A. The free provision of products
B. The Subsidizing of products by the government
C. Market forces of supply and demand
D. All trade via barter
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 - 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 implementation of a common market involves all of the following except ?
A. elimination of trade restrictions among member countries
B. a common tax system and monetary union
C. prohibition to restriction on factor movements
D. a common tariff levied in imports from nonmembers - In a free market?
A. government intervenes
B. government plan production
C. government interferes
D. Prices adjust to reconcile scarcity and desires - In a free market system, the amount of goods and services that any one household gets depends upon its ?
A. income
B. income and wealth
C. wealth
D. wage and interest income - In a free market the combination of products produced will be determined by ?
A. Market forces of supply and demand
B. The government
C. The law
D. The public Sector - In a free market system rationing occurs when there are increases in ?
A. price
B. quantity
C. demand
D. supply
