Which of the Following Is True About a Free Market

question 4

Multiple Choice

Which of the following is true about a free market?

• A)A true free market would deal with market imperfections.
• B)The current situation of six major banks that are "too big to fail" is an example of destructive competition.
• C)In economic systems,it is unlikely for natural monopolies to occur.
• D)The free market in actual terms consists of commerce legally constrained by what is economically desirable and by what is socially desirable as well.
• E)A true free market is a market free from any regulation.

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Definitions:

Inversely Proportional

A relationship between two variables where as one variable increases, the other variable decreases at a corresponding rate.

Directly Proportional

A relationship between two variables where if one increases, the other does as well, by a constant factor.

Electromagnetic Spectrum

The range of all types of electromagnetic radiation, including radio waves, microwaves, infrared, visible light, ultraviolet, X-rays, and gamma rays.

Higher Energy

Describes a state where a system or particle has increased energy, often requiring input of energy to reach this state.