How Are the Fundamental Economic Questions Answered in a Market

question 171

Multiple Choice

How are the fundamental economic questions answered in a market economy?

• A)The government alone decides the answers.
• B)Individuals, firms, and the government interact in markets to decide the answers to these questions.
• C)Households and firms interact in markets to decide the answers to these questions.
• D)Large corporations alone decide the answers.

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Definitions:

Stomach Ulceration

The occurrence of ulcers in the stomach lining, often resulting from infection with H. pylori bacteria, the excessive use of nonsteroidal anti-inflammatory drugs, or other factors.

Sympathetic Arousal

The activation of the sympathetic nervous system, leading to physiological changes such as increased heart rate, blood pressure, and energy release, often in response to stress or danger.

Tend-And-Befriend Response

under stress, people (especially women) often provide support to others (tend) and bond withand seek support from others (befriend).

Psychoneuroimmunology

The study of how psychological, neural, and endocrine processes together affect the immune system and resulting health.