Under laissez-faire, society’s decisions about how much of every product to produce depend on
A. consumer preferences only.
B. production costs only.
C. consumer preferences and production costs.
D. neither consumer preferences nor production costs.
Answer: C
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International financial flows changed in meaningful ways, and these changes were brought to the attention of policy makers by the Asian financial crisis. Describe three changes
What will be an ideal response?
Say that the equilibrium price of natural gas would be $5 per thousand cubic feet, but there is a price ceiling imposed at $3 per thousand cubic feet. That price ceiling is then lowered to $2 per thousand cubic feet. As a result, a. the shortage of natural gas will get worse
b. the shortage of natural gas will get less severe. c. the surplus of natural gas will get worse. d. the surplus of natural gas will get less severe.