When the invisible hand is at work,
A. the price system will sometimes give incorrect cost signals to consumers.
B. the price system will allocate resources based only on consumer need.
C. all prices will be set equal to marginal costs.
D. there will be some shortages and surpluses that cannot be avoided.
Answer: C
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Based on the production and revenue data in the above table, if the wage rate is $20 per worker, how many workers will be hired?
A) 5 B) 4 C) 3 D) 2
How has income inequality changed in recent years? What factors account for the changes?
What will be an ideal response?
In a kinked demand market, whenever one firm decides to lower its price,
a. other firms will automatically follow. b. none of the other firms will follow. c. one half of the firms follow and one half of the firms don't follow the price cut. d. other firms all decide to exit the industry e. all of the other firms raise their prices.
The opportunity cost of any action is
a. irrelevant to economic theory b. limited to the out-of-pocket cost incurred c. the sunk cost plus the markup on materials and labor d. what we gain in the process of consumption e. what is sacrificed to pursue that action