The size of everyone's slice of the economic pie is determined by:
A)input endowments.
B)input endowments and prices.
C)prices formed in the input markets.
D)tradition.

Question

Quizplus · Accepted Answer

The size of everyone's slice of the economic pie is determined by input endowments, but also by the prices of goods and services. Therefore, choice B, input endowments and prices, is the best answer. Prices formed in the input markets can also influence the size of everyone's slice of the economic pie, but this is included in choice B. Tradition is not a factor in determining the size of everyone's slice of the economic pie.

The Size of Everyone's Slice of the Economic Pie Is