Friedman insists that peopleâs incomes should be based on the prices of the goods and services that they produce. What is his rationale for this claim?
Question 6 options:
A. If incomes were not tied to prices, then there might be some people who could not afford basic necessities when they got more expensive
B. If incomes were not tied to prices, then producers of goods and services might not always be able to sell their expensive new products
C. If incomes were not tied to prices, then people would have no real incentive to adjust their behaviors in response to market conditions
D. If incomes were not tied to prices, then it would be difficult to get voters to care enough about the economy to advocate effective policies
In Hong Kong, Friedman found a number of highly-skilled laborers working in an ivory shop with very poor working conditions. How did he explain this phenomenon?
Question 7 options:
A. The workers did not know how valuable their skills would be in the open market because their bosses misinformed them
B. The workers had been prevented from organizing to demand improved working conditions by harsh national labor laws
C. The workers were most concerned with earning higher wages, so they willingly accepted a worse working environment
D. The workers knew that if they insisted on better working conditions, then they would be fired and replaced with ease
Friedman insists that peopleâs incomes should be based on the prices of the goods and services that they produce. What is his rationale for this claim?
Question 6 options:
A. If incomes were not tied to prices, then there might be some people who could not afford basic necessities when they got more expensive
B. If incomes were not tied to prices, then producers of goods and services might not always be able to sell their expensive new products
C. If incomes were not tied to prices, then people would have no real incentive to adjust their behaviors in response to market conditions
D. If incomes were not tied to prices, then it would be difficult to get voters to care enough about the economy to advocate effective policies
In Hong Kong, Friedman found a number of highly-skilled laborers working in an ivory shop with very poor working conditions. How did he explain this phenomenon?
Question 7 options:
| A. The workers did not know how valuable their skills would be in the open market because their bosses misinformed them | |
| B. The workers had been prevented from organizing to demand improved working conditions by harsh national labor laws | |
| C. The workers were most concerned with earning higher wages, so they willingly accepted a worse working environment | |
| D. The workers knew that if they insisted on better working conditions, then they would be fired and replaced with ease |
Related textbook solutions
Related questions
21. The English word that comes from the Greek word for "one who manages a household" is
A- market
B- consumer
C- producer
D- economy
B- should be counted only to the extent that they are more expensive at college than elsewhere. C- usually exceed the opportunity cost of going to college. D- plus the cost of tuition, equals the opportunity cost of going to college. |
B- in most economies, wealthy people consume disproportionate quantities of goods and services. C- governments restrict the production of too many goods and services. D- resources are limited. |
B- markets guiding economic activity. Today many countries that did not have this system have implemented it. C- government guiding economic activity. Today many countries that had this system have abandoned it. D- government guiding economic activity. Today many countries that did not have this system have implemented it. |
B- we should agree with Senator Johnson. C- a good decision requires that we recognize both viewpoints. D- there are no tradeoffs between equity and efficiency. |
B- it does not matter if they charge $10 or $15. C- they would do better charging $15 than $10. D- they should raise the price even more. |
B- helps to explain how the economy is organized. C- incorporates all aspects of the real economy. D- Both (a) and (b) are correct. |
B- households provide firms with labor, land, and capital. C- firms provide households with output. D- firms provide households with profit. |
B- grew rapidly, due to several increases in the minimum wage during those decades. C- grew rapidly, due to government policies that discouraged the importation of foreign products during those decades. D- grew slowly, due to the slow growth of the output of goods and services per hour of U.S. workers' time during those decades. |
| Question 30. 30. For economists, statements about the world are of two types: |
A- assumptions and theories.
B- true statements and false statements.
C- specific statements and general statements.
D- positive statements and normative statements.
