In a free market system, competition generates economic efficiency only when
A) individuals take into account the full opportunity cost of their actions.
B) consumers are motivated by a sense of the greater good, not their own self-interest.
C) firms are motivated by a sense of the greater good, not their desire for profit.
D) economic decisions are taken out the hands of individuals and placed in the hands of government officials.
Answer: A
You might also like to view...
Which of the following will be included in the income-based method of national accounting?
A) A firm's expenditure on raw materials B) A student's expenditure on education C) A consumer's expenditure on a imported car D) A worker's retirement benefits
A U.S. citizen buys some toys made in China for his son. This is an example of a(n) ________
A) transfer payment to the U.S. B) import by China C) transfer payment to China D) export by China
The chairman of the Federal Reserve System:
A. is approved by the House of Representatives and the Senate. B. serves a four-year term. C. is independent of the Board of Governors, to maintain objectivity. D. All of these are true.
Which of the following is true if a market is in equilibrium?
a. price will be rising b. price will be falling c. quantity demanded is greater than quantity supplied d. quantity demanded is equal to quantity supplied e. quantity demanded is less than quantity supplied