Milton Friedman

question 57

Multiple Choice

Milton Friedman:

• A) advocated policies to minimize the market's role.
• B) wanted the practice of Social Security to continue.
• C) wanted the detailed regulations of industries to continue.
• D) desired to turn America's national parks over to corporations.

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Definitions:

Marginal Revenue Product

The additional revenue a firm generates by employing one more unit of input, such as labor or capital.

Perfectly Competitive Market

A market characterized by a high level of competition, where no single buyer or seller can influence prices and products are homogeneous.

Marginal Productivity Principle

An economic principle stating that employers will pay a wage equal to the additional value generated by the last unit of labor hired.

Profit-Maximizing Firm

A company's aim to achieve the highest possible profit through adjusting its production and pricing strategies.