Every wealthy society the world has ever known is characterized by?
A. exploitation of the weak by the strong.
B. extensive destruction of the environment.
C. extensive specialization or division of labor.
D. highly unequal distributions of income.
Answer: C. extensive specialization or division of labor.
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Assume that you had a ticket for a basketball playoff game that you bought for $50, the maximum price you were willing to pay
If a friend of yours offers to buy the ticket for $100 but you decide not to sell it, how can your decision be explained? A) by the endowment effect B) You expect to receive greater utility from attending the playoff game than you received from buying the ticket. C) by the law of diminishing marginal utility D) The income effect from the increase in the price of the ticket from $50 to $100 was greater than the substitution effect.
To minimize total costs for a particular rate of output, a firm will equate
A) the average cost of each factor. B) the marginal revenue of each factor. C) the marginal physical product per dollar spent on each factor. D) the marginal revenue product and variable marginal revenue for each factor.
Which feature of a market would contribute most to overall social welfare?
a. Low prices and high outputs b. Reduction in costs due to technological improvements c. The invention of new products d. Difficult to weigh a, b, and c without further information about society's preferences
The rule of rational choice holds that people will alter their behavior if ______.
a. expected marginal benefits outweigh expected marginal costs b. they can afford both the money costs and the non-money costs c. comparative advantages are greater than absolute advantages d. changes to their course of action are slow and incremental