--%>
Assignment Help - homework help

The market system not only accepts self-interest

Explain the statements: The market system not only accepts self-interest as a fact of human existence.

E

Expert

Verified

The market system not only accepts self-interest as a fact of human existence; it relies on self-interest to achieve society’s material goals. The motive of self interest gives direction and consistency to the economy. Self interest is the primary driving force of market system.  Entrepreneurs try to maximize their profits; property owners want the highest price for their resources; workers choose the job with the fringe benefits, best wages as well as working conditions. Consumers apportion their expenditures to maximize their utility, while seeking the lowest possible prices.

   Related Questions in Business Economics

  • Q : Explain producers in an industry

    Explain producers in an industry are receiving pure or economic profits?

    		•
  • Q : What is the opportunity cost of

    What is the opportunity cost of attending college?  In 2000, nearly 80% of college-educated Americans held jobs, whereas only about 40% of those who did not finish high school held jobs.  How might this difference relate to opportunity costs?

    		•
  • Q : Describe Quasi-public goods Describe

    Describe Quasi-public goods?

    		•
  • Q : Explain about the successful speculation

    Successful speculation tends to: (1) generate inflationary pressure. (2) assist stabilize relative prices. (3) reduce the incomes of the eventual producers of goods. (4) make relative prices more volatile. (5) increase the risk born through the eventu

    		•
  • Q : Price charges of firm in perfectly

    Assume that the equilibrium price within a perfectly competitive industry is $15 and a firm into the industry charges $21 there. Which of the given will occur: w) the firm's profits will rise. x) The firm's revenue will rise. y) The firm will not sell

    		•
  • Q : Economics as a science Economics as a

    Economics as a science:We no longer ask the problem whether economics is an art or a science. Science is a systematized body of knowledge. Merely as physics and chemistry are sciences, econo

    		•
  • Q : What does financial leverage specify

    What does financial leverage specify? And also states its limitations?

    		•
  • Q : Factor Price Equalization theorem

    Please answer each of the exercises below. While you may work together on the homework, you must turn in your own work (in your own words). Homework must be handed in at the beginning of class on the due date unless other arrangements have been made. No late homework will be accepted. Homework wi

    		•
  • Q : Comparative Advantage-Mutual exchange

    Mutually beneficial exchange is probable whenever relative production costs vary previous to trade, is a manner to state the law of: (1) Positive profits from trade. (2) Comparative benefit. (3) Specialization and Division. (4) Purchasing power parity

    		•
  • Q : Illustrate major economic flows that

    Illustrate major economic flows that link U.S. with nations.  Provide an example to illustrate each flow.  Explain the relationship between the top and bottom flows.

    		•