In its most ideal form, a price system allows
A) firms to act in such a way that they eliminate scarcity.
B) consumers to satisfy all their wants.
C) resources to move from lower-valued uses to higher-valued uses through voluntary exchange.
D) government policy makers to allocate resources to the uses which they consider to be in the best interests of society.
Answer: C
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Figure 7-12
Which of the graphs in Figure 7-12 shows a marginal physical product curve that exhibits first increasing and then diminishing marginal returns to sunlight?
A. (a) B. (b) C. (c) D. (d)
A money market deposit would be considered
a. M1 money b. M1 and M2 money c. M2 money d. M2 and M3 money e. a near money
Which one of the following labor resources will likely have the most inelastic supply schedule in the short run?
a. filling station attendants b. sales clerks c. construction laborers d. dentists
Explain how inflation affects savings