Which of the following statements about the way markets allocate resources is most accurate from society's perspective?
A. Markets always fail to allocate resources properly, so we must rely on the government to determine the proper use of our resources.
B. The market may not always allocate resources in a way that is in society's best interest.
C. Resource allocation by markets may not be perfect, but it is always better than government allocation of resources.
D. The market always allocates resources in the best way.
Answer: B
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A) Giffen B) real price C) income D) substitution
What is the relationship between marginal utility and an individual demand curve?
On the contract curve the ______ for both consumers are the same
Fill in the blank(s) with the appropriate word(s).
Economic models relate to
A. how people think about something. B. choice. C. people's choices. D. the reasons people give for donating to charity.