The Dynamic Process of Competition

question 32

Multiple Choice

The dynamic process of competition

• A) provides profit-seeking sellers with little incentive to heed consumer preferences.
• B) was shown by Adam Smith to be a major source of economic inefficiency.
• C) provides consumers with alternative suppliers and thus a mechanism with which they can discipline sellers.
• D) will permit business decision makers to earn long-run economic profit unless they are regulated by government officials.

Be aware of the historical context and problems that led to the drafting of the U.S. Constitution, including national defense, foreign affairs, and governance under the Articles of Confederation.

Understand the relationship between state and local governments, including the creation and dissolution of local governments.

Identify and differentiate between federal and unitary systems of government.

Recognize amendments and clauses in the U.S. Constitution that highlight states' rights and powers.

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Definitions:

Redeem

To recover possession of something by paying a specified amount, or to fulfill a promise or obligation.

Default

Failure to fulfill an obligation, especially failure to meet a financial commitment or appear in a court of law.

Prepayment Penalty Clause

A provision in a contract that imposes a penalty on a borrower for paying off a loan before its maturity date.

Mortgage Loan

A mortgage is a loan that is secured by tangible real estate property, evidenced through a mortgage note that demonstrates both the loan's existence and the property's lien.