Few bother to think about what makes Florida oranges show up daily in South Dakota supermarkets, but the people of South Dakota are likely to think a great deal about this. Why does someone take the time and energy to assure that oranges that are grown in Florida move more than 1,000 miles before they appear on grocery shelves?
What will be an ideal response?
In a market economy, there is profit to be made by meeting peoples’ needs in the marketplace. There is profit for the sellers of oranges if they can get them to market in South Dakota, and consequently they expend the time and money to get them there. The profit motive causes goods and services to be provided in a market economy.
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When the purchase price of an asset is less than its sale price, then there is a
A) budget deficit. B) corporate income tax. C) capital gain. D) capital loss.
Why did many economists during the 1960s and 1970s believe that expansionary macroeconomic policy that resulted in inflation would reduce the rate of unemployment?
a. They failed to realize that the expansionary policy would stimulate aggregate demand. b. They failed to realize that the expansionary policy would reduce real interest rates. c. They failed to incorporate expectations into their analysis. d. They thought that money growth would simply lead to a proportional increase in the price level.
A mandatory seatbelt law ends up raising the number of traffic fatalities if it lowers fatalities per accident from 0.11 to 0.08 while raising the number of accidents per period from 100,000 to any more than
A) 108,000. B) 111,111. C) 137,500. D) 110,000.
Refer to the accompanying figure. If P = $6, then the price elasticity of supply is:
A. less than zero B. positive, but less than one C. greater than one D. one