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In a market economy:
a.) collective decision-making is more important than individual decision-making.

b.) goods and services are distributed as if by an "invisible hand" to those who can not afford them.

c.) profit provides an incentive to be productive.
the distribution of wealth is equitably distributed

A union can influence the equilibrium wage rate by:
collective bargaining.
featherbedding.
lobbying for legislation to reduce immigration.
all of the above

A merger between a leather supplier and a shoe manufacturer would be classified as a:
horizontal merger.
vertical merger.
conglomerate merger.
keiretsu

A market economy (also called a free market economy or a free enterprise economy) is an economic system in which the production and distribution of goods and services take place through the mechanism of free markets guided by a free price system.[1][2] In a market economy, businesses and consumers decide of their own volition what they will purchase and produce. Technically this means that the producer gets to decide what to produce, how much to produce, what to charge to customers for those goods, what to pay employees, etc., and not the government. These decisions in a free-market economy are influenced by the pressures of competition, supply, and demand. This is often contrasted with a planned economy, in which a central government decides what will be produced and in what quantities.[3]

No pure market economy exists. Thus, almost all economies in the world today are mixed economies which combine varying degrees of market and command economy traits. For example, in the United States there are more market economy traits than in Western European countries.[4]


Union~ Collective Bargaining
Merger~ Horizontal Merger

1. c
2. collective bargaining
3. vertical

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