Which of the following observations is true?
A. Free markets will achieve all of society’s goals.
B. The ability to buy goods is divided equally among consumers.
C. The market leads to efficiency in production through the profit motive.
D. The market system encourages firms to use inputs wastefully.
Answer: C
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Why is the demand curve for new capital downward sloping?
What will be an ideal response?
Which of the following contributed to a slowdown in U.S. labor productivity during the 1970s?
a. An increase in the number of skilled legal immigrant workers b. An increase in the illegal employment of minors c. An increase in the number of skilled illegal immigrant workers d. The exit of the baby boom generation from the work force e. Lower energy prices
The act of selling goods abroad at a price below their cost and below the price charged in the domestic market is called
A) dumping. B) slumping. C) export manipulation. D) constraining. E) none of the above
If you have been consuming large quantities of ice cream on a hot summer afternoon and you decide to refrain from any additional consumption, it can be concluded that
A. total utility has reached a maximum and the marginal utility of an additional drink would be zero. B. total utility has reached a minimum and the marginal utility of an additional drink would be large. C. total utility has reached a minimum and the marginal utility of an additional drink would be negative. D. total utility has reached a maximum and the marginal utility of an additional drink would be small.