What is one of the most important advantages of a free market?

A substantial increase in marginal tax rates will most likely encourage individuals to choose: a. to work more overtime

b. to invest more. c. to spend more of their scarce resources looking for tax shelters. d. none of the above.

Which of the following describes a natural monopoly?

a. When economies of scale are large relative to size of market b. Created by the government through patents, copyrights c. When one firm has control of a physical resource d. When one firm pursues predatory pricing