In a competitive market economy, firms select the least-cost production technique because
What will be an ideal response?
to do so will maximize the firms' profits.
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In the late 1980s, Canada embarked on an ambitious policy of reducing inflation to zero. Inflation did come down, while the unemployment rate ________, which ________ the U.S. disinflation experience of the 1980s
A) rose, runs counter to B) rose, duplicates C) remained nearly constant, runs counter to D) remained nearly constant, duplicates
If scarcity was not a fact, a. people could have all they wanted of goods and services for free
b. it would no longer be necessary to make choices. c. poverty, defined as the lack of a minimum level of consumption would also be eliminated. d. all of the above would be true.
A horizontal aggregate supply curve indicates that equilibrium real GDP is determined by aggregate supply
a. True b. False Indicate whether the statement is true or false
(Consider This) According to economists Krueger and Perri:
A. despite the fact that income inequality has increased in recent decades, consumption inequality has remained relatively constant. B. increases in income inequality over recent decades understate the growth in consumption inequality. C. both income and consumption inequality have increased at approximately the same rate over recent decades. D. both income and consumption are more equally distributed than they were 30 years ago.