Why does even a free market economy need some government intervention?
a. to provide for things that the marketplace does not address
b. to ensure that the government has the freedom to tax as necessary
c. to make sure that the government can fulfill its needs for military personnel
d. so that the government has some control over factor resources
Answer: to provide for things that the marketplace does not address.
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Why do landlords tend to discriminate against a person's race, religion, or age more when rent controls are imposed?
A) Landlords are naturally racist and bigoted. B) Only minority groups will take an interest in apartments with controlled rents. C) Economists will encourage landlords to discriminate. D) Rent controls lower the personal costs of discriminatory behavior among landlords. E) For all of the above reasons.
The functioning of a market economy is very dependent upon investment for provision of capital and future growth. Describe the process of investment and employment of the created capital in production.
What will be an ideal response?