Attempts

Keep the Highest/1

7. The interaction of individual choices

Immediately after an ice storm brought down power lines throughout the region, hardware stores were sold out of batteries and flashlights. However,

within a couple of days, special deliveries brought in extra batteries and flashlights, and everyone who wanted to buy a flashlight or batteries was able

to do so.

Which of the following principles of economic interaction best describes this scenario?

O There are gains from trade.

O All costs are opportunity costs.

O Markets allocate goods effectively.

O When markets do not achieve efficiency, government intervention can improve overall welfare.