In a market system, ________ provide signals about whether resources are relatively scarce or abundant
A) prices
B) buyers alone
C) government officials
D) scientists
Answer: A
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Surplus value that is lost because something is keeping the market from functioning as well as it can is called
A) a tax. B) a subsidy. C) rent seeking. D) deadweight loss.
In the short run, a perfectly competitive firm ________ make an economic profit and ________ incur an economic loss
A) might; will never B) will never; might C) might; might D) will never; will never E) will definitely; will never
The length of the short run is the same for all firms
Indicate whether the statement is true or false
Environmentalists, politicians, and economists have different perspectives on what constitutes appropriate environmental policy. Which of the following statements was probably made by an economist?
A. “We take the position that there are rights involved here, rights to be protected from threats to your health, regardless of the costs involved.” B. “Protecting the environment is so important that standards cannot be too high, and continuing improvements must be made regardless of cost.” C. “Pollution is a moral issue that cannot be reduced to dollars and cents.” D. “Clean air and water are things we can buy-if the price is right.”