In a Market Economy, If the Sum of the Consumption

question 156

Multiple Choice

In a market economy, if the sum of the consumption, investment, and net export shares of GDP is greater than 1 minus the government share of GDP, market forces will result in

• A)GDP contracting.
• B)an increase in interest rates.
• C)GDP expanding.
• D)a decrease in interest rates.
• E)an increase in the price level.

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Definitions:

Robinson-Patman Act

A United States antitrust law aimed at prohibiting price discrimination that could harm competition.

Barriers to Entry

Economic, procedural, or regulatory obstacles that prevent or hinder new competitors from easily entering an industry or market segment.

Market Obstructions

Factors or barriers that hinder the free flow of goods, services, and information in a market, potentially limiting competition or consumer choice.

Switching Costs

The expenses or inconveniences that customers incur as a result of changing from one product, service, supplier, or system to another.