Which of the following is true?
a. Markets determine what goods are going to be produced, but not the distribution of output among members of society.
b. Markets determine the distribution of output among members of society, but not what goods are going to be produced.
c. Markets determine both what goods are going to be produced and the distribution of output among members of society.
d. Government can redistribute income without changing what will be produced in a society.
Question 2
Which of the following is correct?
a. An increase in the quantity of labor always leads to economic growth.
b. Increased education adds to the stock of human capital, not unlike building factories adds to the stock of physical capital.
c. A decrease in the productivity of labor leads to economic growth.
d. Japan and Hong Kong are rich in natural resources.
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