Log in
Economics
1
answer
1
watching
509
views

Which of the following statements does not apply to a market economy?
a. Firms decide whom to hire and what to produce.
b. Households decide which firms to work for and what to buy with their incomes.
c. The "invisible hand" usually maximizes the well-being of society as a whole.
d. Government policies are the primary forces that guide the decisions of firms and households.

Watch
1
answer
1
watching
509
views

For unlimited access to Homework Help, a Homework+ subscription is required.

Sonia Dhawan
Sonia DhawanLv10
24 Sep 2020

Unlock all answers

Get 1 free homework help answer.
Already have an account? Log in
Share

Related textbook solutions

Principles of Economics
2nd Edition, 2017
Openstax
ISBN: 9781947172364
Principles of Macroeconomics
2 Edition,
Openstax
ISBN: 9781947172388
Principles of Microeconomics
2 Edition,
Openstax
ISBN: 9781947172340

Related questions

The invisible hand refers to:

a. how central planners made economic decisions

b. how the decisions of households and firms lead to desirable market outcomes

c. the control that large firms have over the economy

d. government regulations without which the economy would be less efficient 

Which best describes the idea behind the "invisible hand"?

a. Producers decide what to make for consumers, which guides the economy.

b. Individuals seeking their own self interest benefit the economy as a whole.

c. Government sets policy for producers and consumers, which guides the economy.

d. Consumers decide what they need and want to buy, which guides the economy.

What is the market for factors of production?

  1. What is the market for factors of production?

    1. The market for factors of production is where households and firms interact to trade factors of production for factor payments. For example this is where people provide firms with labor and firms pay them with wages. 

  2. What is the money market?

    1. The money market is where households, firms, and the government may save and/or invest their money to earn interests. Money market includes banks, stock market, bonds market, and other financial institutions where economic actors can buy and sell financial assets to earn interests and/or dividends.

  3. Who are the three economic actors in the circular flow model?

    1. In a circular flow model, the three main economic actors are the households, firms, and the government. Households include the typical individual consumers. Firms include businesses and similar producers in the economy. Finally, the government refers to the whole government system from federal to local level.

  4. How is the national income of an economy determined?

    1. The national income of an economy is determined by measuring the total value of the output produced in an economy or the total income earned by the actors in the economy. In a circular flow model, we can see that the value of total output produced should equal the total value of income generated and earned in the economy. This is because every dollar spent by someone in the economy is received by another person in the economy as income.

  5. What is GDP?

    1. The gross domestic product or GDP represents the sum total of the value of the final goods and services produced within the economy for a given year. It is the most commonly used measure of its economy’s productivity and income.

Weekly leaderboard

Home
Homework Help 3,900,000
Economics 400,000
Start filling in the gaps now
Log in