FC9: Competition, consumer sovereignty, laissez faire, roles of government
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Last updated over 6 years ago
5 questions
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Question 1
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Question 2
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Question 3
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Question 4
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Question 5
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Competition between business firms to win more customers results in what 2 key benefits for consumers?
higher prices and better quality products
higher prices and lower quality products
lower prices and better quality products
lower prices and lower quality products
The characteristic of consumer sovereignty as "ruler" of the market answers which of the 3 basic questions?
For whom to produce
Why to produce
How to produce
What to produce
In a market economy the governments role should be limited. What term is used to describe this limited involvement?
Private property rights
Profit motive
Competition
Laissez Faire
When government provides national defense, police/fire protection, and tornado warning systems it is fulfilling which government role?
Providing public goods
Redistributing income
Correcting for market failures
Protecting property rights
Sometimes markets don't work properly and result in unintended side effects on some third party. When government steps in to try and correct these issues it is acting in which of its roles?