Which of the following is not an idea advocated by Adam Smith?
A. Producers must compete with one another to win customer's business.
B. Pursuit of private self interest with an invisible hand is the best way to promote the public interest.
C. Government should control the economy.
D. The government should provide for national defense and little else.
Answer: C
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Some economists argue that it is possible to raise the standard of living by reducing population growth. As an economist interested in incentives rather than coercion, what kind of policy would you recommend to slow population growth?
The increase in total cost that results from producing one more unit of output is the marginal cost.
a. true b. false
Table 5.3National Income Accounts (dollar figures are in billions)Expenditures for consumer goods and services$8,200Exports$1,700Government purchases of goods and services$2,500Social Security taxes$1,900Net investment$1,400Indirect business taxes$1,400Imports$1,900Gross investment$1,800Corporate income taxes$600Personal income taxes$1,500Corporate retained earnings$130Net foreign factor income$100Government transfer payments to households$1600Net interest payments to households$500On the basis of Table 5.3, the value of the income aggregate that is defined as "after-tax income of consumers" (also known as disposable income) is
A. $10,070 billion. B. $10,600 billion. C. $8,570 billion. D. $11,570 billion.
In a graph showing the short-run cost curves, the one curve which declines continuously as we expand output is called
A. the average total cost curve. B. the marginal cost curve. C. the average variable cost curve. D. the average fixed cost curve.