The Rules of the Game Refer To

question 11

Multiple Choice

The rules of the game refer to:

• A)any factor that facilitates production and exchange,such as tax laws and property rights.
• B)a gradual but consistent change in the price level until a fair price is attained.
• C)the set of election laws that ensure that all elections are fair.
• D)the rules that a firm must follow in order to earn a profit.
• E)the requirement that households must supply labor to firms.

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Definitions:

Opportunity Cost

The loss of potential gain from other alternatives when one alternative is chosen.

Rival Nation

A country that competes with another, often in economic, military, or technological aspects.

Mercantilism

An economic theory and practice that promotes government regulation of the nation's economy to increase state power at the expense of rival national powers.

Trade Surplus

A situation where a country's exports exceed its imports over a given period.