Which of the following statements about free- market economies is false?
A) Markets tend to be impersonal and to decentralize economic power.
B) An efficiently functioning market economy will correct temporary shortages and surpluses.
C) The existence of profits and losses provides signals to other economic agents.
D) In a free- market economy there is no role for government intervention.
E) The government has a role to play in correcting market failures.
Correct Answer:
Verified
Q83: Profit- motivated product and process innovation is
Q84: Q85: Services such as those within the justice Q86: A good example of a public good Q87: For a production process that involves a Q89: Consider a product that generates positive externalities Q90: Government intervention to correct market failures may Q91: Which of the following roles of the Q92: Refer to Figure 16- 1. Suppose that Q93: One cause of allocative inefficiency is
A) perfect
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