Your younger brother likes to yell at the dinner table so the rest of the family will give him what he wants. Assume that this has proved quite successful for him time and again
Let's say that you are from a family of eight and every member of your family starts to adopt the same strategy. Would this work? Why or why not? Explain.
This strategy will probably not work very well. With everyone yelling at the table it is unlikely that anyone will get heard. This is what is known as the fallacy of composition. What is good for the individual is not necessarily good for the whole.
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A command system is a method of organizing production that
A) uses a market-like mechanism inside the firm. B) relies on competitive markets. C) uses a managerial hierarchy. D) uses incentives most extensively.
When Abel Steel Manufacturing purchased three new furnaces for $8.5 million, the value of gross private domestic investment rose by $8.5 million
Indicate whether the statement is true or false
Suppose the current exchange rate is $1.60 per pound. A sweater purchased by an American in London costing 50 pounds would cost
a. $31.25 b. $80.00 c. $51.60 d. $48.40 e. $100.00
Which of the following is true regarding value and exchange?
a. Middlemen fail to create value since they do not expand the supply of physical goods. b. A good or service has a given value regardless of who uses it or how it is used. c. If it were not for middlemen, transaction costs would be zero. d. Voluntary exchange creates value by channeling goods into the hands of people who value them most.