Property owners move scarce resources toward the production of goods most valued by society because:
A. firms attempt to maximize profits.
B. government controls the allocation of resources.
C. managers are solely pursuing the interests of society.
D. consumers demand inexpensive goods and services.
Answer: D
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The entry of new firms into a perfectly competitive market shifts the demand curve outward.
Answer the following statement true (T) or false (F)
Studies have shown that children born into poverty do not suffer from lasting health problems
Indicate whether the statement is true or false
When the Fed conducts expansionary monetary policy, lower short-term interest rates will tend to stimulate the economy. How will the change in the velocity of money affect this result?
a. Velocity will decline, enhancing the stimulus effect. b. Velocity will increase, somewhat dampening the stimulus effect. c. Velocity will increase, enhancing the stimulus effect. d. Velocity will decline, somewhat dampening the stimulus effect.
Which of these does not interfere with the price mechanism?
A. Usury laws B. Minimum wage laws C. Farm price supports, or price floors D. The law of supply and demand