The Text Attributes the Growth of Economies Over the Last

question 1

Multiple Choice

The text attributes the growth of economies over the last 200 years largely to:

• A) the development of markets.
• B) the discovery of additional resources.
• C) a decrease in the size of the world population.
• D) laissez-faire policies.

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Definitions:

Market

A system or an area where buyers and sellers interact to trade goods, services, or financial instruments.

Positive Externality

A benefit gained by a third party not directly involved in a transaction or activity, where the social or economic gain is not reflected in the market price.

Social Planner

A theoretical decision-maker in economics who aims to achieve optimal outcomes for society by considering the allocation of resources and distribution of goods and services.

Subsidy

A payment made by the government to a firm, industry, or individual, usually to encourage the production of a certain good or service or to reduce its price for consumers.