Underlying economic theory is the idea that
A) people respond only to negative incentives, not to positive ones.
B) choices are affected by both positive and negative incentives.
C) value judgments do not play a role in the economic decisions people make.
D) money is the only incentive that matters.
B
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Why is the pricing outcome of a perfectly competitive firm efficient in economic sense?
What will be an ideal response?
How do speculators provide a more rational guide to production and consumption decisions compared to markets?
Refer to the diagram, which pertains to a purely competitive firm. Curve C represents:
A. total revenue and marginal revenue.
B. marginal revenue only.
C. total revenue and average revenue.
D. average revenue and marginal revenue.
Examine the reasons employment levels remained relatively low after the Great Recession.
What will be an ideal response?