The saying “the lower the price, the better” may not always be correct for an economy’s public interest because
A. people should have to pay for what they want.
B. people will overuse something they perceive as being cheaper than the utility they receive for it.
C. the government can no longer afford to provide all the goods and services it provides because it is slowly going broke.
D. cheaper prices will make people buy less of other things.
Answer: B
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Assume that the market for executive travel is perfectly competitive. If the availability of time-sharing reduces transaction costs and the owner's cost of negotiating for a single trip, which of the following situations must occur?
a. The hours of flight available will increase. b. The hours of flight available will decrease. c. The cost of flying will remain steady. d. The cost of flying will increase.
Which of the following are equivalent terms?
a. The absence of structural unemployment and the absence of cyclical unemployment b. Normal employment and the absence of structural unemployment c. Full employment and the absence of cyclical unemployment d. Normal employment and the absence of frictional unemployment e. Null employment and the absence of frictional unemployment.
If the government imposes a binding price floor in a market, then the consumer surplus in that market will decrease
a. True b. False Indicate whether the statement is true or false
What is the effect of supply-side inflation on the short-run Phillips curve?
What will be an ideal response?