Chapter 1 ECON

If market failures exist, the market can become efficient when:

the government intervenes to improve society's welfare

Economists generally agree that people are most likely to change their behavior when they:

are given incentives to do so

Economists would most likely agree with which one of the following statements?

People usually exploit opportunities to make themselves better off

The condition of scarcity means that:

choices must be made in the allocation of productive resources

Adam Smith used the idea of the invisible hand to refer to the ability of market economies to:

harness the power of individual self-interest for the good of society as a whole

After finishing high school, LeBron James decided to enter the NBA rather that going to college to begin his studies to become a doctor. This choice between the two careers can best be described by:

opportunity cost