The Law of One Price holds true because
a. All farmers agree on a single price to sell their product
b. Government price supports level the playing field
c. Profit seeking individuals try to buy low and sell high
d. Food is generally price inelastic
c. Profit seeking individuals try to buy low and sell high
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The person who assumes the risks and uncertainties of business is
a. a manager of the business b. an owner of the business c. an excellent example of human capital d. an entrepreneur e. key to production, but not a factor of production
In the natural gas industry, recent technological improvements and the use of fracking have
a. increased the demand for natural gas, causing its price to rise. b. increased the supply of natural gas, causing its price to decline. c. reduced the demand for natural gas even though the proved reserves of the resource have fallen. d. resulted in sharply higher natural gas prices because of the dangers that accompany fracking.