The Distribution of Income in a Market Economy Is Determined

question 214

Multiple Choice

The distribution of income in a market economy is determined by

• A)the level of employment and prices of the factors of production.
• B)the prices of factors of production.
• C)largely unknown forces, which economists seek to discover.
• D)decisions of government offices related to distribution.

Comprehend the concept of differentiated and standardized products within various market structures.

Understand the impact of the number of firms in an industry on market models and competition levels.

Identify market models based on the level of price control within the industry.

Understand the concept of imperfect competition and its applicability across market models.

---

Definitions:

Main Purpose Doctrine

A legal principle that a promise to pay the debt of another does not need to be in writing if the guarantor's main purpose benefits themselves.

Statute of Frauds

A legal principle requiring certain contracts to be in writing and signed by the party to be charged to be enforceable.

Oral Contract

An agreement between parties that is spoken, not written, but is still legally binding.

Customized Goods

Products that are specifically made according to the specifications or requirements of a customer.