Few bother to think about what makes Florida oranges show up daily in South Dakota supermarkets, but the people of South Dakota are likely to think a great deal about this. Why does someone take the time and energy to assure that oranges which are grown in Florida move more than 1,000 miles before they appear on grocery shelves?
In a market economy, there is profit to be made by meeting peoples' needs in the marketplace. There is profit for the sellers of oranges if they can get them to market in South Dakota, and consequently they expend the time and money to get them there. The profit motive causes goods and services to be provided in a market economy.
You might also like to view...
The current account includes
A) the value of trade in merchandise. B) services. C) unilateral transfers. D) All of the above.
Increases in both human capital per worker and physical capital per worker increase productivity
a. True b. False Indicate whether the statement is true or false
Allen Steel Company is considering whether to build a new mill. If the interest rate rises,
a. the present value of the returns from the mill will fall, so Allen will be less likely to build the mill. b. the present value of the returns from the mill will fall, so Allen will be more likely to build the mill. c. the present value of the returns from the mill will rise, so Allen will be less likely to build the mill. d. the present value of the returns from the mill will rise, so Allen will be more likely to build the mill.
A share of stock is
A) a claim on the assets of the corporation that gives the purchaser an ownership right in the corporation. B) the share of profits distributed to stockholders. C) a promise to pay for the use of someone else's money. D) a promise to loan money to someone. E) a and b