Question

29. A decrease in the price of on-demand video-streaming services such as Netflix leads to a(n)

decrease in the demand for on-demand video-streaming.

increase in the demand for cable TV service.

increase in the demand for on-demand video-streaming.

decrease in the demand for cable TV service.

31.In a pure market economy, the government's primary role does NOT include

enforcing contracts between private parties.

protecting property rights.

providing public goods, such as national defense.

reallocating resources across the economy.

33.When consumers have no choice but to buy from one firm

they will always get the good or service at the lowest price available.

government regulation is usually used to protect consumers.

None of these occur.

they usually end up paying too much for the good or service.

39.

Government policy to achieve high employment may cause inflation to rise too quickly.

False

True

Answer 1

29 : decrease in the demand for cable TV services.

Explanation

: netflix is the dominate company in the on-media industry,with 167 million paying subscribers around the world.It has disputed the television industry and has forsed cable companies to change the way of doing business.

:so,decrease in price of on-demand video streaming service such as netflix leads to decrease in demand for cable TV services.

31 : enforcing contract between private parties.

Explanation

: role of government in pure market economy have four main functions:

* to increase efficiency;

*to provide infrastructure;

*to promote equity;

*to foster stability and growth.

:Enforcing contract between private parties comes under contract enforcement and dispute resolution. In this system of contract enforcements effectively and widely accessible to all the investers.

33: None of these occur.

Explanation:

: when consumer has no choice to buy from one firm,leads to deferral decreased significantly when were first allowed to practice making monetary trade-offs among the available alternatives.

39: True

Explanation:

: Inflation occurs when an economy grows due to increased spending. So, government policy to achieve high employment will cause Inflation rise too quickly.

: Government can use wage and price control to fight inflation but that can cause recession and job losses.