The price system allocates resources efficiently EXCEPT when
A) consumers decide they want more of a good.
B) resources are utilized to produce the highest-valued goods and services.
C) voluntary exchange exists.
D) the production of a good affects parties other than its buyers and sellers.
Answer: D
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The quickest way for aggressive oligopolists to expand production capacity and market power is to
a. erect barriers to entry b. cut price to sell more c. raise price to increase profit and apply the profit to research and development d. merge with a competitor e. conduct surveys to price discriminate more effectively
Regarding the production possibilities curve, an improvement in technology will
A) shift the curve o the left. B) cause a movement downward along the curve. C) cause a movement downward along the curve D) shift the curve to the right.