In its most ideal form, a price system allows
A) firms to act in such a way that they eliminate scarcity.
B) consumers to satisfy all their wants.
C) resources to move from lower-valued uses to higher-valued uses through voluntary exchange.
D) government policy makers to allocate resources to the uses which they consider to be in the best interests of society.
C
You might also like to view...
Draw individual demands for caviar for Al, Barbara, Chuck, and Denise where Al’s demand is relatively inelastic, Barbara’s is elastic, Chuck’s is upward sloping, and Denise refuses to eat caviar at any price. Then draw the corresponding market demand.
What will be an ideal response?
Why is diversification recommended for investors?
What will be an ideal response?
GDP is a flow variable because
a. all macroeconomic aggregates are flow variables b. it measures the production that takes place over a period of time c. it measures the amount of goods and services that exist at the end of a time period d. the number of goods and services produced is usually a fixed number e. it accounts for the goods and services transferred from one firm to another
A negative cross elasticity indicates that two goods are complements
a. True b. False Indicate whether the statement is true or false