________ states that under certain conditions, private parties can arrive at an efficient solution without government involvement.
A. The Tiebout hypothesis
B. The free-rider hypothesis
C. The Coase theorem
D. The impossibility theorem
Answer: C
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The relationship between education and economic growth can best be summarized by saying that
A) educated people are less apt to consume goods that deplete economic resources, which encourages economic growth. B) educational expenditures tend to divert funds from productive investments, which discourages economic growth. C) educational expenditures tend to be inflationary, which discourages economic growth. D) education has benefits beyond those who receive the education, which encourages economic growth.
The aggregate demand curve shows the relationship between the ________ and ________
A) price level; quantity of real GDP demanded B) real interest rate: quantity of real GDP supplied C) nominal interest rate; quantity of real GDP demanded D) inflation rate; quantity of real GDP demanded
Refer to the accompanying figure. When Jeff goes from watching 3 to 4 movies a day, his total utility:
A. increases. B. does not change. C. decreases. D. gets close to zero.
Exhibit 9-6 Monopoly
?
When the monopolist is maximizing total profit in Exhibit 9-6, the average total cost of producing that output level is:
A. $4. B. $6. C. $7. D. $8.