Which of the following statements is NOT true about the price system?
A) The price system allows resources to flow from low-valued uses to high-valued uses.
B) Firms have total control over what consumers can buy.
C) Individuals have freedom to purchase what they want.
D) The price system allows for economic efficiency.
Answer: B
You might also like to view...
The market system does not produce public goods because:
A. there is no need or demand for such goods. B. private firms cannot stop consumers who are unwilling to pay for such goods from benefiting from them. C. public enterprises can produce such goods at lower cost than can private enterprises. D. their production seriously distorts the distribution of income.
Suppose Bobby just watched a documentary about the massive decline in house prices during the Great Recession. According to the availability heuristic, this is likely to make Bobby:
A. believe that house prices will be more stable in the future. B. believe that he is wealthier than other people. C. worry that the price of his own house might fall. D. think the movie is biased towards the status quo.
If in the market for apples the supply has decreased, then
A) the supply curve for apples has shifted to the right. B) there has been a movement upwards along the supply curve for apples. C) the supply curve for apples has shifted to the left. D) there has been a movement downwards along the supply curve for apples.
The reason that the impact on prices of decriminalization is ambiguous is that decriminalization causes a price
A. decreasing supply curve movement and a price increasing demand curve movement. B. decreasing supply curve movement and a price decreasing demand curve movement. C. increasing supply curve movement and a price decreasing demand curve movement. D. increasing supply curve movement and a price increasing demand curve movement.