In a Market Economy

question 111

Multiple Choice

In a market economy,

• A) there is not a fixed economic pie to be divided among individuals, but rather income is created by the individuals who earn it.
• B) differences in incomes provide individuals with an incentive to supply resources that are highly valued by others.
• C) a person's income is determined by the quantity and value of the resources that they supply to the market.
• D) all of the above are true.

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Definitions:

Representation

In law, a statement of fact made to induce someone into a contract or a presentation by one party in a lawsuit on behalf of another.

Tort

An action that causes harm or injury to another person.

Estoppel

A legal principle that prevents someone from arguing something contrary to a claim they previously made or an action they took.

Authority

The right or power to act or to make a decision.