Multiple Choice
Which of the following best describes the difference between the Human Development Index (HDI) and Gross Domestic Product (GDP) in terms of what they measure?
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0. Basic Principles of Economics
Introduction to Economics
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Join thousands of students who trust us to help them ace their exams!Watch the first videoMultiple Choice
Which of the following is a function of firms in a market economy?
A
Regulating interest rates
B
Producing goods and services
C
Setting government fiscal policy
D
Printing money
Verified step by step guidance1
Understand the role of firms in a market economy: Firms are primarily responsible for producing goods and services that satisfy consumer needs and wants.
Recognize that regulating interest rates is typically a function of central banks or monetary authorities, not firms.
Identify that setting government fiscal policy is the responsibility of the government, involving decisions on taxation and spending.
Know that printing money is a function of the central bank or monetary authority, not firms.
Conclude that among the options, producing goods and services is the correct function of firms in a market economy.
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