Suppose you were able to start new cities on a planet in outer space. Suppose also that these cities will be self-supporting. Further, they will be democratic--with the objective of maximizing consumer welfare--measured by the level of consumer satisfaction. The economic decisions will be made through the "market mechanism." Which of the following statements might be made by some of the settlers?
A) "The price of food is too high."
B) "Intermediaries should be eliminated."
C) "Advertising expenditures are too high."
D) "Marketing costs too much."
E) All of the above are likely to be made.

Question

Quizplus · Accepted Answer

All of the statements are likely to be made because in a market-based economy, consumers have a say in the price and quality of goods and services. They may argue that certain costs, such as advertising or intermediaries, are driving up prices and reducing their level of satisfaction.

Suppose You Were Able to Start New Cities on a Planet