Whenever a buyer and a seller agree to trade
A) they must have identical opportunity costs in producing their respective products.
B) the agreement is made based on absolute advantage.
C) one party will always be worse off.
D) both must believe they will be made better off.
D
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The effect of a rise in peoples' incomes on equilibrium price and quantity of Florida orange juice is to
a. increase equilibrium price and quantity b. decrease equilibrium price and quantity c. increase equilibrium price and decrease equilibrium quantity d. increase equilibrium quantity and decrease equilibrium price e. decrease equilibrium price and increase equilibrium
Decentralized decisionmaking is very controversial in a corporate environment. Central office managers feel like they are losing control of managers in specific plants or regional offices. What are some of the issues that must be reviewed before making the final decision on where to place final decision-making power?
What will be an ideal response?
Consumer spending in what category is the largest component of the CPI?
A rational person:
A. makes choices based on added benefits and added costs. B. considers the financial benefits and financial costs of making a choice. C. undertakes activities until the net benefits become less than zero. D. makes choices based on total benefits and total costs.