The term consumer sovereignty means that:
A. Government is responsible for protecting consumers' interests
B. What is produced is ultimately determined by what consumers buy
C. There are no limits on what consumers may buy in a market system
D. Producers have strong control over what consumers buy
Answer: B
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The reason computers have not yet replaced trading floors can be attributed to
A) lack of sellers. B) lack of buyers. C) lack of liquidity. D) lack of technology.
Refer to Scenario 18.1. Which of the following is TRUE?
A) The factory will never agree to B, because that would leave them with much less profit than the fishermen. B) C will never occur because that would leave the fishermen with much less profit than the factory. C) If the factory refused to install a filter, the fishermen would refuse to install a treatment plant. D) The factory must install a filter, because they contaminate the water. E) The profits above indicate profit before any agreement is made, and profit varies enough to make a mutually acceptable agreement possible.
You should decide to go to a movie:
A. if the marginal cost of the movie exceeds its marginal benefit. B. if the marginal benefit of the movie exceeds its marginal cost. C. if your income will allow you to buy a ticket. D. because movies are enjoyable.
Refer to the table below for a certain product's market in Econland. If the world price of the product were $6 and a tariff of $1 per unit were applied to imports of the product, then the total revenue (after tariff) going to domestic producers would be:
A. $11,200, and the total revenue (after tariff) going to foreign producers would be $2,800
B. $11,200, and the total revenue (after tariff) going to foreign producers would be $2,400
C. $8,400, and the total revenue (after tariff) going to foreign producers would be $2,800
D. $13,200, and the total revenue (after tariff) going to foreign producers would be $2,400