« previous next »

Author Question: Define free markets. Does a perfectly competitive market qualify as a free market? What will be ... (Read 179 times)

debasdf

  • Hero Member
  • *****
  • Posts: 570
on: Jun 30, 2018
Define free markets. Does a perfectly competitive market qualify as a free market?
 
  What will be an ideal response?

Question 2

Fiscal policy to solve short-run economic problems supports the Keynesian notion of
 
  A) there being no government role in the economy. B) the need for autocratic rule.
  C) an active government role in the economy. D) the long-run nature of the economy.


Jane

  • Sr. Member
  • ****
  • Posts: 309
Reply #1 on: Jun 30, 2018
Answer to Question 1

A free market can be defined as a market structure where all exchanges are voluntary. There is very little government control or coercion in the market and the government does not tell market participants what to do. In a perfectly competitive market, the equilibrium price and quantity are determined through the forces of demand and supply, and without any government intervention. Hence, perfectly competitive markets qualify as free markets.

Answer to Question 2

C


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
« previous next »
 

Did you know?

Immunoglobulin injections may give short-term protection against, or reduce severity of certain diseases. They help people who have an inherited problem making their own antibodies, or those who are having certain types of cancer treatments.

Did you know?

Side effects from substance abuse include nausea, dehydration, reduced productivitiy, and dependence. Though these effects usually worsen over time, the constant need for the substance often overcomes rational thinking.

Did you know?

Patients who cannot swallow may receive nutrition via a parenteral route—usually, a catheter is inserted through the chest into a large vein going into the heart.

Did you know?

When Gabriel Fahrenheit invented the first mercury thermometer, he called "zero degrees" the lowest temperature he was able to attain with a mixture of ice and salt. For the upper point of his scale, he used 96°, which he measured as normal human body temperature (we know it to be 98.6° today because of more accurate thermometers).

Did you know?

The tallest man ever known was Robert Wadlow, an American, who reached the height of 8 feet 11 inches. He died at age 26 years from an infection caused by the immense weight of his body (491 pounds) and the stress on his leg bones and muscles.

The relationship between free energy and electron movement along the electron transport chain The relationship between free energy and electron movement along the electron transport chain
Free energy change during electron transport Free energy change during electron transport
Hydroelectric power: 2013 Global Market Hydroelectric power: 2013 Global Market
Eat Gluten Free Eat Gluten Free
Foods made with fat substitutes aren’t calorie free Foods made with fat substitutes aren’t calorie free
First-order sensory neuron with free nerve endings First-order sensory neuron with free nerve endings
Video: How does asthma work?And How do you treat asthma?

For a complete list of videos, visit our video library