When economists say that an activity meets the criterion for economic efficiency, they mean
a. a majority of citizens favor the activity.
b. the benefits that result from the activity exceed the costs.
c. the number of people who gain from the activity exceeds the number on whom costs are imposed.
d. the costs that result from the activity exceed the benefits.
B
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Historically, why did the import-substitution strategy become popular among developing nations?
What will be an ideal response?
Which of the following is true regarding private ownership?
a. Relative to common ownership, private ownership generally leads to less conservation of resources. b. With private ownership, owners are held accountable for using their resources in a manner that harms the resources of others. c. Private ownership generally gives the owner little incentive to find ways to use the resource wisely. d. With private ownership, resource owners have little incentive to consider the preferences of others when deciding how to employ a resource.
If the society chooses point B instead of point C,
Hypothetical Production Schedule for a Two-Product Economy
A. economic growth is more likely.
B. economic growth is less likely.
C. the chances of achieving economic growth will not be affected.
D. unemployment will result.
From the perspective of the theory of efficient markets, explain why it may be difficult for professional portfolio managers who have an exceptional year to continuously outperform the market average.
What will be an ideal response?