Which of the following statements does not apply to a market economy?
a. Firms decide whom to hire and what to produce.
b. The "invisible hand" usually maximizes the income of society as a whole.
c. Households decide which firms to work for and what to buy with their incomes.
d. Government policies are the primary forces that guide the decisions of firms and households.
d
Economics
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The demand curve for a good that has many perfect substitutes in consumption is likely to be
a. upward sloping b. steep c. highly inelastic d. horizontal e. vertical
Economics
The equation of exchange is written as
a. M × V = P × Y. b. M × P = V × Y. c. M × Y = P × V. d. M × Y = Y × P.
Economics