Economic theory and history indicate that open elections and democratically elected governments
a. are unique in their ability to produce good economic institutions.
b. must be accompanied by economic institutions that will allocate resources efficiently, or otherwise democratic institutions will not survive.
c. reflect only transactions that are based on mutual agreement and voluntary exchange.
d. are unable to guarantee either the emergence or continuation of economic institutions and policies that will encourage productive behavior.
D
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A technological improvement lowers the cost of producing coffee. At the same time, consumers' preferences for coffee increase. The equilibrium price of coffee will
A) rise. B) fall. C) remain the same. D) rise, fall, or stay the same, depending on the relative size of the shifts in the demand and supply curves.
What is a quota?
What will be an ideal response?