A fundamental aspect of economics is to
A) ensure that every firm makes a profit.
B) analyze how choices are made.
C) satisfy all our wants.
D) make sure that our resources will always be unlimited.
Ans: B) analyze how choices are made.
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The table above shows techniques that can be used to produce 100 shirts. If the price of an hour of labor is $6 and the price of a unit of capital is $30, then the economically efficient technique is
A) W. B) X. C) Y. D) Z.
The symmetry principle states that
A) the poorest person must be made as well off as possible. B) income should be transferred from the rich to the poor up to the point of complete equality. C) resources should be common property. D) people in similar situations must be treated similarly.
If a firm raised its price and discovered that its total revenue fell, then the demand for its product is
A) relatively elastic. B) perfectly inelastic. C) perfectly elastic. D) relatively inelastic.
"The market has failed to provide enough rental housing in New York City. This demonstrates another failure of free markets-they may lead to shortages of necessities." Explain why you agree or disagree