The participants in a market economy cannot pursue their goals freely because they are affected by_________________?
Correct answer: C. prices and incomes
- A. the ratio of gold to paper money
- B. economic laws
- C. prices and incomes
- D. the religious institution
Explanation
Prices and incomes limit what consumers and firms can buy, sell or produce, so market participants cannot pursue unlimited goals freely. Gold ratios and religious institutions are not the general market constraint described here.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? [email protected]
About Microeconomics
Individual consumers, firms and markets are examined through demand and supply, elasticity, consumer choice, production, costs, revenue and the determination of prices and output. The topic also covers market structures such as perfect competition, monopoly and oligopoly, plus market failure, externalities and the distinction between microeconomic decisions and economy-wide outcomes.
Practise Microeconomics
1,742 free Microeconomics MCQs from Economics, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Discussion
Stuck on an option, or know a faster way to get there? Ask or explain it here.
No comments yet. Be the first to explain this one.
Exams that ask Economics questions like this
Economics is on 3 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Microeconomics questions
The marginal productivity of labor_________________?
The more consumers are willing to pay for a product_____________________?
The price system_______________?
When supply and demand are essentially equal the economy is said to be in________________?
Professionalization means________________?
What kind of a system is the economic institution ?