If resources are owned by individuals instead of government,
a. resources will be used less efficiently.
b. resource use will tend to be unchanging and determined by historical usage patterns.
c. resource use will be guided by changing relative prices as owners attempt to maximize self-interest.
d. market prices will not reflect changing values of different uses of the resources.
e. none of the above answers are correct.
c. resource use will be guided by changing relative prices as owners attempt to maximize self-interest.
You might also like to view...
Use the figure below to answer the following question.
In the past few years, the demand for donuts has decreased. This would be illustrated by a change from
A. point 6 to point 3. B. point 2 to point 5. C. point 4 to point 6. D. point 1 to point 2.
When the United States trades with China,
a. both countries will likely benefit. b. only United States will benefit. c. only China will benefit. d. neither country will benefit.
One of the main purposes of the Fed's reserve requirements is to
A. provide cash flow for business firms. B. provide sources for foreign exchange. C. provide sources for foreign investments. D. regulate the lending ability of member banks.
The circular flow diagram shows that
A) the value of total income is equal to the total value of expenditures on final goods and services. B) firms pay households wages, and households receive transfer payments from firms. C) households spend all their income on goods and services. D) GDP will be less than the total value of expenditures on final goods and services in the economy.