In its most ideal form, a price system allows
A) firms to act in such a way that they eliminate scarcity.
B) consumers to satisfy all their wants.
C) resources to move from lower-valued uses to higher-valued uses through voluntary exchange.
D) government policy makers to allocate resources to the uses which they consider to be in the best interests of society.
Answer: C
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In making your decision whether to take a trip during spring break, you compare all the other activities you could undertake. As a result, you
A) are not making a rational choice. B) must have made a choice in the social interest. C) limit the cost and the benefits you can gain. D) are making a choice on the margin. E) do not face an opportunity cost.
An increase in the price of butter, a substitute good, would be most likely to cause
a. a rightward shift of the demand curve for margarine b. a leftward shift of the demand curve for margarine c. the quantity of margarine demanded to increase d. the quantity of margarine demanded to decrease e. a decrease in the price of margarine