Multiple Choice
Which term refers to the excess return an asset earns based on the level of risk taken?
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0. Basic Principles of Economics
Introduction to Economics
Multiple Choice
In the context of economics, which of the following best describes 'expressed powers'?
A
The power of money to facilitate exchange in an economy
B
Powers specifically granted to the government by a constitution or legal document
C
The ability of consumers to influence market prices through demand
D
The authority of firms to set prices in a perfectly competitive market
Verified step by step guidance1
Step 1: Understand the term 'expressed powers' in the context of economics and government. These are powers explicitly granted to an entity, typically a government, through a formal document such as a constitution or legal statute.
Step 2: Recognize that 'expressed powers' are not related to economic concepts like money's function, consumer influence on prices, or firm pricing strategies in markets.
Step 3: Identify that the correct description of 'expressed powers' is the specific legal authority given to a government, which distinguishes it from implied or inherent powers.
Step 4: Compare the options given and eliminate those that describe economic functions or market behaviors rather than legal or constitutional authority.
Step 5: Conclude that the best description of 'expressed powers' is 'Powers specifically granted to the government by a constitution or legal document.'
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