Answer the following statements true (T) or false (F)
1. The choice of the most efficient production technique is not affected by how much buyers want to buy the product.
2. In a market system, a consumer's willingness to pay—but not his ability to pay—is based on his income.
3. Even if prices are fixed and competition is restricted by the government, the "invisible hand" will still work in the economy and lead to economic efficiency.
4. In a competitive market economy, firms and resource suppliers seeking to further their own self-interest will end up, as though guided by an "invisible hand," promoting the public interest.
1. TRUE
2. FALSE
3. FALSE
4. TRUE
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In 1886, the price of a 6.5-ounce glass bottle of Coca Cola was priced at 5 cents. In the case of this size bottle of Coca Cola, the price could be considered
A) as remaining sticky in the short run but flexible in the long run. B) as remaining sticky in both the short run and the long run. C) as being flexible in the short run, but returning to price stickiness in the long run. D) as being flexible in both the short run and the long run.
If you believe that all workers should be paid the same, you believe in the
A. benefits standard. B. productivity standard. C. comparative worth principle. D. egalitarian principle.