Which of the following is the best way for a student of economics to make sensible judgments about real-world markets and real-world governments?
a. In the real world, government action is always the best way to control markets.
b. We must see the strengths and weaknesses of both markets and government.
c. Markets’ lack of flexibility must produce unwanted results, such as monopolies and worker oppression.
d. Government action is imperfect and does not reflect majority views, so it has no useful role to play in regulating markets.
b. We must see the strengths and weaknesses of both markets and government.
To make sensible judgments about economic policy, we must see the strengths and weaknesses of both markets and government.
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State and local governments typically spend most of their budgets on providing
a. education. b. public goods. c. public welfare programs. d. police protection and administrative services.
As the market price decreases, the slope of the total revenue curve of a perfectly competitive firm becomes steeper
a. True b. False Indicate whether the statement is true or false
Refer to the accompanying table below. According to the Cost-Benefit Principle, how many units of this activity should be carried out?Units of ActivityTotal CostTotal Benefit0$0$01$30$1002$40$1603$60$1904$100$2105$150$2206$210$225
A. 6 B. 1 C. 4 D. 3
When firms earn above normal rates of return
A. they tend to leave the industry and seek profits elsewhere. B. they are still breaking even economically. C. they are able to raise their prices to increase their profits. D. they are earning positive profits and new firms are likely to enter the industry.