In Comparison with the Other Decades of the Last Half

question 96

Multiple Choice

In comparison with the other decades of the last half of the twentieth century,the decade of the 1990s can be described as the decade with the ______ of real GDP growth,inflation,and unemployment.

• A) lowest average rates
• B) highest average rates
• C) smallest volatility
• D) greatest volatility

---

Definitions:

Market System

An economic system in which decisions regarding investment, production, and distribution are based on supply and demand, with minimal government interference.

Scarcity

The limits placed on the amounts and types of goods and services available for consumption as the result of there being only limited economic resources from which to produce output; the fundamental economic constraint that creates opportunity costs and that necessitates the use of marginal analysis (cost-benefit analysis) to make optimal choices.

Mixed Capitalism

An economic system blending elements of capitalism and socialism, featuring private enterprise alongside government regulation and interventions.

Invisible Hand

A concept introduced by Adam Smith to describe the self-regulating nature of the marketplace, where individual self-interests inadvertently benefit society.