Which of the Following Statements Describes Economists' Attitudes Regarding the Influence

question 203

Multiple Choice

Which of the following statements describes economists' attitudes regarding the influence of social factors on the choices consumers make?

• A)Economists formerly believed social factors were very important, but now most economists believe social factors are not important.
• B)Economists believe social factors affect consumer choice in markets for public goods but not in markets for private goods.
• C)Liberal economists believe social factors are very important; conservative economists do not believe social factors have any influence on consumers.
• D)Economists traditionally believed they were unimportant, but many economists now believe social factors are important.

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Definitions:

Privatization

The process of transferring ownership or control of a business or service from the government to private individuals or organizations.

Transitional Economies

These are countries changing from a centrally planned economy towards a more market-oriented economy.

Global Economic Fluctuations

Variations in economic activity, such as growth and recession, experienced across the world economy.

Communication Networks

Systems or structures that enable the exchange of information between entities over distances through electronic or other means.