Macroeconomics: Private and Public Choice (MindTap Course List)
16th Edition
ISBN: 9781305506756
Author: James D. Gwartney, Richard L. Stroup, Russell S. Sobel, David A. Macpherson
Publisher: Cengage Learning
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Chapter 2, Problem 4CQ
To determine
Whether the business people exploit the needs of customers and gains of business.
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Economics is the study of how a society manages its resources to
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production efficiency
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Chapter 2 Solutions
Macroeconomics: Private and Public Choice (MindTap Course List)
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Similar questions
Self-interested behavior can lead to positive social results. Adam Smith says that the actions of self-interested individuals produces a property called the "invisible hand" that will _____________.
Select the correct answer below:
A. only benefit them but not society as a whole
B. reduce the overall well-being of both these individuals and society as a whole
C. also lead to a promotion of the greater good
D. none of the above.
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Based on the concepts of production and cost. PART A: Several years ago, hurricane Gilbert destroyed thousands of acres of banana in Jamaica. Farmers whose crops were destroyed by the hurricane were much worse off, but farmers whose crops were not destroyed benefited from the hurricane. Why did this occur? What information would you need about the market for bananas in order to assess whether farmers as a group were hurt or helped by the floods?
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What type of economists believe that markets naturally self-correct, and will reward good strategies and punish bad ones?
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Which of the following refers to an economy which most economic decisions are made by the government and not by buyers and sellers who may be individuals or firms?
Financial Capital markets
Free markets
Command economies
Market-Oriented economies
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Identify the relevant economic concept which can be matched to the descriptions below. Simple give the question number and the relevant terms/ words in each case
Q.1.1 Government sets a price level in a market that is aimed at assisting consumers
Q.1.2 Quantity demanded is less than quantity supplied
Q.1.3 A situation where the quantity supplied of a good is highly sensitive to a change in the price of the good
Q.1.4 A curve showing combinations of two goods that provide a consumer with a constant amount of utility
Q.1.5 The addition to total output when one more worker is hired, ceteris paribus
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Which of the following is an example of an incentive?
A. Purchases from a store earn the buyer rewards such as discounts on future purchases.
B. Heavy taxes on unhealthy foods.
C. Government campaign to get people to exercise
D. Selling someone a product that you made.
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The act of using goods and services to satisfy the human wants is known as ______
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If executives of various firms met in a smoke-filled hotel room to fix prices and to allocate which firms will produce what quantity of the good or service, then what are they doing?
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Avon pays its sales personnel a commission for every sale they make. Which economic principle is Avon trying to apply?
Group of answer choices
A)People face trade-offs
B)Trade can make everyone better off
C)Markets can make everyone better off
D)People respond to incentives
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A curve that shows various combinations of two goods that a country can produce when all of the country’s resources are fully employed and used in efficient manner:
Select one:
a) Supply Curve
b) Budget Line
c) Production Possibility Frontier
d) Demand Curve
e) None of the options are correct
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A __________ system is a method of making economic decisions that allows individuals and firms to decide who gets what and how using a voluntary exchange.
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