Trade-offs are involved in most policy decisions
a. True
b. False
Indicate whether the statement is true or false
True
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Which is the more efficient use of one's tight budget: going to a first-run movie at $7.50 or waiting for the video to be available through Netflix?
A) Going to the first-run movie B) Waiting for the video C) Doing neither, especially if one's budget is tight. D) It depends on the chooser's own evaluations of costs and benefits.
Suppose that a monopoly is currently producing the quantity at which marginal revenue is less than marginal cost. The monopoly can increase its profit by ________
A) shutting down B) lowering its price and increasing its output C) raising its price and decreasing its output D) lowering its price and decreasing its output
In the case of a positive externality, the entire demand curve lies
A. above the entire marginal social benefit curve. B. below the entire marginal social benefit curve. C. above the entire supply curve. D. below the entire supply curve. E. b and c
Although the law of diminishing returns is widely accepted in economics, it also ensures that the marginal revenue product must be positive
Indicate whether the statement is true or false