Critics of government regulation argue that government interference in the marketplace stifles the "animal spirits" of entrepreneurship.
Answer the following statement true (T) or false (F)
True
Regulation and intervention by the government reduce incentives to produce.
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Compared to the previous 20 years, productivity growth in the United States increased between 1996 and 2014
Indicate whether the statement is true or false
Why is voluntary exchange an important source of economic prosperity?
A) All of the above are correct. B) It makes it possible to produce a larger output as a result of gains from division of labor and specialization. C) It makes it possible to produce a larger output as a result of lower per unit costs that often accompany large-scale production. D) It moves goods from people who value them less to people who value them more.
Consider the supply and demand graph below to answer three questions: (a) Use a letter to identify the area of maximum consumer surplus; (b) Use a letter to identify the area of maximum producer surplus; (c) Why is the output level shown by the vertical
dashed line one that is allocatively efficient from a marginal cost and marginal benefit perspective? What will be an ideal response?
Marginal cost is calculated for a particular increase in output by
A) dividing the change in total cost by the change in output. B) dividing the total cost by the change in output. C) multiplying the total cost by the change in output. D) multiplying the change in total cost by the change in output.