The Idea That Economic Transactions Are Governed by the Self-Interest

question 33

Multiple Choice

The idea that economic transactions are governed by the self-interest of profit-seeking individuals refers to which feature of capitalism?

• A) market-driven interactions
• B) private ownership
• C) commodification
• D) consumer sovereignty

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Definitions:

Elasticity

A measure of how much the quantity demanded or supplied of a good changes in response to a change in price.

Quantity Demanded

The total amount of a good or service that consumers are willing and able to purchase at a given price.

Change in Price

The variation in the price level of goods or services over a period of time.

Elastic

Describes a situation in economics where the demand or supply for a good or service significantly changes in response to changes in price.