Which of the following statements about free-market economies is FALSE? a. The government has a role to play in correcting market failures. b. Markets tend to be impersonal and to decentralize economic power. c. In a free-market economy there is no role for government intervention. d. An efficiently functioning market economy will correct temporary shortages and surpluses. e. The existence of profits and losses provides signals to other economic agents.
Which of the following statements about free-market economies is FALSE? a. The government has a role to play in correcting market failures. b. Markets tend to be impersonal and to decentralize economic power. c. In a free-market economy there is no role for government intervention. d. An efficiently functioning market economy will correct temporary shortages and surpluses. e. The existence of profits and losses provides signals to other economic agents.
Chapter1: Making Economics Decisions
Section: Chapter Questions
Problem 1QTC
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Q45
Which of the following statements about free-market economies is FALSE?
a.
The government has a role to play in correcting market failures.
b.
Markets tend to be impersonal and to decentralize economic power.
c.
In a free-market economy there is no role for government intervention.
d.
An efficiently functioning market economy will correct temporary shortages and surpluses.
e.
The existence of profits and losses provides signals to other economic agents.
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