1. In the ADM case, what did ADM and the other companies do to fix the market prices for lysine?
a. They bullied the buyers into accepting a specific price.
b. They agreed on the price for which the companies sold the product, and they agreed on limits of production
c. They each agreed to produce only a certain amount of lysine per year.
d. They agreed on the price for which the companies would sell the product, but they were free to produce as much as they liked.
2. Which of the following is a characteristic of a perfectly free economy?
a. There are only a few buyers and sellers who have a substantial share of the market.
b. Goods being sold in the market are extremely similar to one another.
c. The government regulates prices of goods being bought and sold in the market.
d. None of the above
These multiple choice questions belong to Economics. The 1st question discusses about ADM case and what ADM and other companies do to fix market prices for lysine and the 2nd question discusses about the characteristic of a perfectly free economy.
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