In a Free Market Equilibrium, Prices and Quantities Are Uniquely

question 199

Multiple Choice

In a free market equilibrium, prices and quantities are uniquely:

• A) stable.
• B) unstable.
• C) moving in the "right" direction.
• D) moving in the "wrong" direction.

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Definitions:

Relations of Production

The relationships that exist in economic systems between those who own the means of production and those who sell their labor.

Capitalist System

An economic system where trade, industries, and the means of production are largely or entirely privately owned and operated for profit.

Exploitation

The difference between what workers are paid and the wealth they create for the owner.

Inequality

The unequal distribution of resources, rights, and opportunities among individuals or groups in a society.