Question

1. The competitive market system: a. Encourages innovation because successful innovators are rewarded with economic profits b. Encourages innovation because government provides tax breaks and subsidies to those who develop new products or new productive techniques. c. Discourages innovation because firms want to get all the profits possible from existing machinery and equipment. 2. Which of the following countries has out of control inflation? a. United States b. Saudi Arabia c. Venezuela d. South Korea 3. An inferior good, when discussing determinants of demand would be considered: a. Goods that are bought more when income increases b. Goods that are inferior in impressions amongst the millennials c. Goods that are bought more when income decreases. d. Goods that put fear inferior people. 4 The laws of supply dictates all of the following except: a. As the price rises, the quantity supplied rises b. Price acts as an incentive to producers c. The amount producers are willing and able to sell at a given price d. How much producers can produce in a recession 5. Laissez-Faire Capitalism have all the following attributes except: a. People interact in market to buy and sell b. Government sets prices to be faire c. Products and Production decided by Market d. Unobservable force of the Invisible hand

Please solve this as soon as possible. i have very less time.

Answer 1

1. Option a. Competition leads to technological advancements which increases efficiency and hence profits increases

2. Option c. The inflation rate is over 130,060 percent in 2018

3. Option c. With the increase in income people switch over to superior high quality goods

4. Option a. Price and quantity supplied are directly related

5. Option b. It argues that government should not interfere and let market forces set the price based on demand and supply