One way the government could try to move people toward making choices with a socially desirable outcome would be to:
a. marginalize private benefits.
b. require education on the topic.
c. provide subsidies.
d. legislate socially desirable options.
c. provide subsidies.
How can government try to move the market level of output closer to the socially desirable level of output? One policy would be to provide a subsidy, like a voucher, to any citizen who wishes to take the action.
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If Project A has a cost of $5, and a provides a benefit of $10, and Project B has a cost of $2, and provides benefit of $4, then switching from Project A to Project B:
A) increases the net benefit by $3. B) decreases the net benefit by $3. C) increases the net benefit by $6. D) decreases the net benefit by $6.
To maximize profits, a firm should continue to increase production of a good until:
A. profits are zero. B. total revenue equals total cost. C. average cost equals average revenue. D. marginal revenue equals marginal cost.
How did the collapse of the housing bubble cause a contraction in output?
A. Because banks were unwilling to lend, many businesses were suddenly unable to access credit for their day-to-day needs. B. Because consumers lost confidence in the banking industry, they stopped depositing money, so banks could no longer lend. C. When banks wanted to make loans, but couldn't find any credit-worthy customers to loan to. D. When homeowners lost value in their homes, they stopped saving, which reduced banks' ability to lend.
Moving upward along a downward sloping straight-line demand curve, as the price of the product goes up
A) the price elasticity of demand does not change. B) the price elasticity of demand goes from being inelastic to being elastic. C) the price elasticity of demand goes from being elastic to being inelastic. D) the price elasticity of demand goes from negative to positive.