Which of the Following Statements Is True

question 82

Multiple Choice

Which of the following statements is true?

• A)Markets respond to consumer preferences, whereas government responds only to societal preferences.
• B)Markets keep costs low because producers desire to please people regardless of cost.
• C)Government keeps costs low because it has a moral obligation to voters.
• D)It is safe to assume that government will do what is best for society, whereas markets do what is best for business owners.
• E)The lack of the profit motive encourages supervisors in government agencies to make decisions concerning employees on the basis of issues other than merit.

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Definitions:

Scarcity

A fundamental economic problem of having seemingly limitless human wants in a world of limited resources.

Choices

Decisions made by individuals or organizations among two or more alternatives.

Resources

The total means available for economic and political development, such as minerals, labor force, and financial wealth.

Depression

A harsh and long-lasting decline in economic operations, featuring a marked decrease in the GDP, rising unemployment figures, and continued decrease in prices.