Which of the Following Is a Function of the Australian

question 68

Multiple Choice

Which of the following is a function of the Australian federal government?

• A)Determining what wages firms will pay their workers.
• B)Deciding how much to produce of private goods and services
• C)Providing the legal and social framework for economic activity
• D)Distributing private goods and services
• E)Deciding for whom firms should produce goods and services

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Definitions:

Law of Demand

A principle stating that, ceteris paribus, there is an inverse relationship between the price of a good or service and the quantity of it that consumers are willing to purchase.

Quantity Purchased

The total number of units bought of a particular good or service.

Inferior Good

A type of good for which demand decreases as the income of consumers increases, in contrast to a normal good.

Equilibrium Price

The cost at which the amount of a product or service consumers want to buy matches the amount that manufacturers are willing to sell.