Explain the differences between a market system, a command economy, and a mixed economy with respect to production and distribution decisions
What will be an ideal response?
In a market system, sellers primarily make production and distribution decisions, but they must satisfy the tastes of buyers. In a command economy, the government makes production and distribution decisions. In a mixed economy, buyers and sellers make some production and distribution decisions and the government makes others.
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Simon is given a free ticket to see Coldplay Saturday night. He already has a ticket to see Sting in concert that night. The Sting ticket cost Simon $50 though he would have paid as much as $80 to go to the show
Simon knows that he can easily sell the Sting ticket on Craigslist for $60. What is his opportunity cost of seeing Coldplay?
Self-interest
A) implies that a person must try to increase wealth at all times. B) implies that people will not give away wealth. C) is consistent with many goals that people pursue, including betterment of others. D) applies only to people in market settings.