An economy is associated with every society because
a. in every society there are workers and owners of firms
b. all people enjoy consuming goods
c. the law of scarcity is universal
d. the circular flow model applies to all societies
e. economy and society are synonymous
C
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Refer to Figure 5-16. How much is Amit willing to pay per street light to have 4 street lights installed?
A) $3,600 B) $2,700 C) $1,800 D) $900
Roses are more expensive on Valentine's Day than at other times of the year, yet sales of roses are highest on that day. How does economic theory account for this?
A) An increase in demand pushes up the market clearing price of roses. B) People buying the roses are irrational. C) Roses are not subject to the law of demand. D) Florists know that there are no substitutes for roses, so they take advantage of consumers on Valentine's Day.