Explain why economists consider it to be one of the economic functions of government to provide a legal system
What will be an ideal response?
A market economy relies heavily on contracts and property rights. Property rights must be defined and protected if people are going to make investments in resources, and if people are going to exchange assets. Contracts must also be enforced. By providing a legal system, the government can ensure that a market system will function better.
Economics
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What role do households play in output markets? What role do households play in factor markets?
What will be an ideal response?
Economics
Unemployment that is caused by a mismatch of the demand for workers with certain skills and the skills of unemployed workers is:
a. frictional unemployment. b. structural unemployment. c. cyclical unemployment. d. mismatch unemployment.
Economics