Just two questions.


1 Which of these statements is one of the principles of a free-market system?

AThe gross domestic product must be as large as possible.

BThe government must prevent consumers from being coerced.

CProductive resources must be protected against overexploitation.

DPublic goods must be provided to secure a high standard of living.

2 What does the inflation rate indicate?

Ahow far in debt the government is

Bhow much the minimum wage has increased

Chow quickly prices are rising

Dhow much interest is being charged on mortgages

Verified Answer :

To answer the first question above as to which statement is one of the principles of a free-market system, the answer is letter C. Productive resources must be protected against over-exploitation.

The answer to the second question above as to what does an inflation rate indicate is Letter C. It reflects on the prices rising either to height or to low.

Answer: B) The government must prevent consumers from being coerced.

Explanation: