Explain the importance of self-interest in the operation of a market system
Please provide the best answer for the statement.
Self-interest is the motivating force behind both the demand and supply sides of the product and resource markets in a capitalist system. Entrepreneurs engage in production with the expectation of making a profit; workers seek the best wage and working conditions they can get; consumers allocate their spending in order to maximize their satisfaction.
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In the Solow model, if f(k) = 2k0.5, s = 0.1, n = 0.1, and d = 0.05, what is the value of f(k) at equilibrium?
A. 2/3 B. 8/3 C. 4/3 D. 2
If there is no change in equilibrium price after a $1 per unit tax is imposed on suppliers, demand must be perfectly inelastic
a. True b. False
Modern inventions, like the Internet or discoveries in genetics or materials science, seem to provide smaller gains to output than earlier inventions like the steam engine or the railroad
a. True b. False Indicate whether the statement is true or false
When Lorenzo eats 1 slice of pizza for lunch, his total utility is 23, and when he eats 2 slices of pizza for lunch, his total utility is 42. Assuming that Lorenzo's marginal utility from eating pizza is always positive, we can infer that his total utility from eating 3 slices of pizza at lunch is:
A. greater than 42 and less than 46. B. greater than 23 and less than 42. C. greater than 42 and less than 61. D. greater than 42 and less than 84.