If a Market System Is Functioning Well, We Can Conclude

question 19

Multiple Choice

If a market system is functioning well, we can conclude that goods with

• A)high opportunity costs tend to have high money costs.
• B)low opportunity costs tend to have high money costs.
• C)high opportunity costs tend to have low money costs.
• D)low opportunity costs tend to have zero money costs.
• E)high opportunity costs tend to have zero money costs.

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Definitions:

Law Merchant

A body of commercial law that merchants developed over centuries, based on common practices and used to resolve disputes.

Magna Carta

A charter of liberties to which the English barons forced King John to give his assent in 1215; a document constituting a fundamental guarantee of rights and privileges.

Safe Passage

The right or permission to traverse a specific area or domain without harm or obstruction.

Breach of Contract

A violation of any of the agreed-upon terms and conditions of a binding contract, which may result in legal action or damages.