Economic Booms and Busts

question 56

Multiple Choice

Economic booms and busts:

• A) can be moderated but cannot be avoided.
• B) can be avoided by employing growth-encouraging institutions.
• C) do not occur, since the economy always grows at a constant pace.
• D) occur only when countries have bad institutions.

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Definitions:

Perfectly Competitive

A market scenario where products are identical, there are numerous buyers and sellers, and no single entity can influence the market price.

Brewmaster

A professional who is responsible for the production, innovation, and quality control of beer in a brewery.

Perfectly Competitive

A market structure characterized by many buyers and sellers, homogeneous products, and free entry and exit, which leads to an efficient allocation of resources.

Market Wage

The prevailing rate of pay for workers in a particular labor market, job, or industry.