Which of the following economies have the highest degree of economic freedom?

Sumptuary taxes are often justified on the grounds that _____

a. bad activities should be discouraged b. the rich should pay more c. the poor should pay less d. merit goods need encouragement

A profit-maximizing firm would

a. consider opportunity costs rather than accounting costs when making decisions about output. b. expand current output if the revenues expected from doing so were less than the expected costs. c. enlarge its current plant size if present depreciation costs were less than average variable costs. d. increase output in the next period if accounting profits during the previous period were positive.