Multiple Choice
Under perfect competition, the market mechanism, without any government regulation, is capable of
A) allocating resources efficiently.
B) solving equity problems.
C) making the average cost of labor equal to the average cost of all commodities.
D) making more income available to the poor.
Correct Answer:
Verified
Correct Answer:
Verified
Q11: Free-market economies have led to<br>A)high growth rates
Q12: Whenever MC of the last unit produced
Q13: There is only one efficient allocation of
Q14: When the price of the product falls<br>A)consumer's
Q15: If the marginal utility of apples exceeds
Q17: Which type of economic system will produce
Q18: If both the MU and MC of
Q19: When a shortage occurs in the market
Q20: In a market economy, goods are allocated
Q21: Explain how the free-market mechanism adjusts prices