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Establishing the "Rules of the Game" Means That the Government

Question 12

Multiple Choice

Establishing the "rules of the game" means that the government


A) uses its authority to redistribute income from the rich to the poor.
B) becomes the owner of all of the nonhuman resources in the economy.
C) should be the primary sponsor of athletic contests in the country.
D) establishes market prices by law.
E) provides an appropriate institutional framework to enable the price system to function properly.

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