When the San Francisco City Manager Faces a Complaint That

question 51

Multiple Choice

When the San Francisco city manager faces a complaint that the city council chamber podium is not accessible to individuals with disabilities, he responds that the $1 million improvement will not happen because "that money could be spent building 70 curb ramps." This statement best represents this economic concept:

• A)Resources are scarce.
• B)The real cost of something is what you must give up to get it.
• C)"How much" is a decision at the margin.
• D)When markets don't achieve efficiency, government intervention can improve society's welfare.

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Definitions:

Warehouse

A large building where goods are stored before they are distributed to stores or consumers.

Principal-Agent Problem

A dilemma in economics where one party (the agent) is expected to act in the best interest of another party (the principal) but may have a motivation to act in their own interest instead.

Ownership

The legal right or state of having possession and control over property, which can be an object, land/real estate, intellectual property, or a corporate entity.

Control

The power to influence or direct people's behavior or the course of events.