One of the effects of gas prices rising from about $2 to about $4 per gallon was airlines ordering new, fuel-efficient aircraft. True Trade can make everyone better off except in the case where one person is better at doing everything. False The invisible hand ensures that economic prosperity is distributed equally. False The government can potentially improve market outcomes if market inequalities or market failure exists. True Fundamentally, economics deals with Scarcity The overriding reason why households and societies face many decisions is that resources are scarce The phenomenon of scarcity stems from the fact that resources are limited In most societies, resources are allocated by the combined actions of millions of households and firms. Economics is the study of how society manages its unlimited wants and limited resources. While pollution regulations yield the benefit of a cleaner environment and the improved health that comes with it, the regulations come...