How does ‘consumer sovereignty’ determine the types and quantities of the goods produced in an economy?
Please provide the best answer for the statement.
Consumers make ‘dollar votes’ by purchasing what they are most willing and able to buy. The ‘votes’ register consumers’ wants in the economy and if the demand is enough to produce an economic profit in an industry, then the economy will increase production of that good. Conversely, if the level of demand results in a loss in that industry, the economy will decrease production of that good. Businesses and resource suppliers are not completely free to produce the goods and services they wish, but rather must face the preferences of the consumers.
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A retailer buys goods worth $15,000 from a manufacturer and sells it for $18,250. He adds a value of ________ to the production process
A) $15,000 B) $3,250 C) $33,250 D) $18,250
The ability of factors to migrate abroad
A) reduces the severity of unemployment and the fall in the rate of return available to investors. B) increases the severity of unemployment and the fall in the rate of return available to investors. C) reduces the severity of unemployment but increases the fall in the rate of return available to investors. D) cannot change the severity of unemployment and the constant rate of return available to investors. E) reduces the migration of highly-skilled workers.
In a fixed exchange rate regime, the value of a currency is pegged to ________
A) an anchor currency B) a currency board C) a dirty float D) an interest rate standard such as the Treasury bill rate in the U.S.
The Articles of Confederation and Perpetual Union (1781) failed because they made governmental controls too restrictive and federal taxes too high
Indicate whether the statement is true or false