Which of the following situations represents an economic problem?
a) A student trying to decide how to spend his weekly allowance.
b) A country choosing to sacrifice some privacy in order to gain more security.
c) Neither situation is an example of an economic problem.
d) Both situations are examples of an economic problem.
d) Both situations are examples of an economic problem
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If the institutions in an economy decide to limit the legal back up that protected the interest of entrepreneurs, the returns-to-entrepreneurship curve in the economy will:
A) shift leftward. B) shift rightward. C) become vertical. D) become horizontal.
Which statement is true?
A. During prosperity, federal government borrowing crowds out a substantial amount of private investment. B. During recessions, federal government borrowing crowds out a substantial amount of private investment. C. Neither statement is true.
he condition where the opportunity cost of producing additional units of a good rises as society produces more of that good is known as ______.
a. increasing opportunity cost b. deceasing production possibilities c. efficient opportunity allocation d. increasingly scarce efficiency
Local governments provide law enforcement, which benefits society, but if the costs of law enforcement exceed the benefits, the result is a situation of
A. Government failure. B. Efficiency as long as there is some benefit. C. Market failure. D. Public choice theory.