An Economist Might Say, "The Market Guides and Coordinates Individuals

question 212

Multiple Choice

An economist might say, "The market guides and coordinates individuals' actions." Which of the following is an example of this happening?

• A)An employer tells an employee to get to work early.
• B)As the price of oranges rises, more individuals begin to produce oranges.
• C)The manager of a plant issues a directive that there will be no more smoking in the cafeteria.
• D)a and c
• E)a, b, and c

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Definitions:

Incremental Choices

Decisions made by comparing the additional benefits and costs of a little more or a little less of some activity.

Margin

In finance, the difference between the selling price and the cost of the goods sold, often expressed as a percentage of sales.

Economic Activity

The actions that involve the production, distribution, and consumption of goods and services in an economy.

Marginal Analysis

An examination of the benefits and costs of one additional unit of change.