Since air pollution creates a negative externality,
a. social welfare will be enhanced when some, but not all air pollution is eliminated.
b. social welfare is optimal when all air pollution is eliminated.
c. governments should encourage private firms to consider only private costs.
d. the free market result maximizes social welfare.
a
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Benjamin works as an economist for the federal government. Which of the following questions is he trying to answer as part of his job?
a. How can I communicate more effectively? b. What is the difference between artificial intelligence and emotional intelligence? c. How can government officials get themselves re-elected to office? d. What is the correlation between race and class? e. How do people use limited resources to try to satisfy unlimited wants?
Compare the views of Keynesian and mainstream economists on the effects fiscal stimulus has on real GDP and employment
What will be an ideal response?
Based on your understanding of your roommate's preferences, you predict that he will select the spaghetti for his lunch at the cafeteria, but instead he chooses the gyros. How do you describe this event in terms of economic theory?
A. Your roommate is irrational. B. You roommate does not know his own preferences as well as you do. C. You constructed a model that made a prediction, and the prediction was refuted. D. Your roommate does not know what is in his own best interests.
Suppose that you consume only pizza, which costs $4 per slice, and Diet Pepsi, which costs $2 each. The table above gives your utility from consuming these two goods. If your income is $20, which of the following consumption combinations will you choose?
A. 2 slice of pizza and 6 Diet Pepsis B. 3 slices of pizza and 4 Diet Pepsis C. 5 slices of pizza and no Diet Pepsi D. 4 slices of pizza and 2 Diet Pepsis