Economic growth is determined by forces outside the control of the market system.

When a 13-year-old girl consents to babysit John's children for $5 per hour, economists assume

A) the girl was made worse off while John was made better off. B) the girl was made better off while John was made worse off. C) both parties were made worse off. D) both parties were made better off.

When a good suddenly becomes more scarce in a free market, caused by a significant increase in consumer demand, then

A) it is a clear sign that households have become more greedy. B) the price will tend to rise rapidly in light of the greater scarcity. C) suppliers will gain in the exchange and buyers will lose. D) the law of demand will be contradicted because people will be buying more, not less, at a higher price. E) all of the above are true.