Which of the following does not describe governmental policy actions that are helpful in supporting growth in an economy? Governmental policies that
A) provide secure rights to private property.
B) establish an independent court system that enforces contracts.
C) facilitate the development of an efficient financial system.
D) avoid playing any role in developing communication systems.
Question 2
A perfectly competitive wheat farmer in a constant-cost industry produces 1,000 bushels of wheat at a total cost of 50,000. The prevailing market price is 48. What will happen to the market price of wheat in the long run?
A) The price remains constant at 48.
B) The price rises above 48.
C) The price falls below 48.
D) There is insufficient information to answer the question.
Helpful AA summary
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