Which of the Following Is an Example of Market Governance

question 41

Multiple Choice

Which of the following is an example of market governance?

• A)A firm vertically integrating backward to own the necessary inputs
• B)A firm entering into a contract with input suppliers.
• C)A school recruiting a part-time teacher to cover for a permanent employee who falls very ill.
• D)A school requesting its permanent employees to cover for a teacher who suddenly falls ill.

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Definitions:

Price Level

An index that measures the average of current prices across the entire spectrum of goods and services produced in the economy compared to a base year.

Aggregate Supply Curve

A diagram that exhibits the comprehensive volume of goods and services that economic producers are ready and capable of supplying at assorted price levels.

Aggregate Demand Curve

A graph representing the total demand for goods and services within an economy at various price levels.

Government Spending

The total amount of public expenditure by government agencies and institutions.