Which of the following is not an argument for private sector production of collective consumption goods?
a. The good might only be a collective consumption good because of current government production.
b. Private sector production provides information about consumer preferences about the good.
c. The private sector has lower pay scales then government, lowering overhead costs.
d. Taxes used to finance government production produce deadweight losses.
c
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The logical (and sometimes illogical) shortcuts that people derive from experience which economize on their mental capabilities are called:
a. irrationalities. b. heuristics. c. statistical errors. d. probabilities.
Alex's production is worth $60 and Harry's is worth $40 . They decide to form a coalition and produce together such that their combined production is worth $135 . What is the maximum benefit Alex can earn while ensuring Harry does not leave the coalition?
a. $75 b. $96 c. $77.5 d. $94
If MPC = 0.80, MPS must be ______ and the income multiplier is ______
a. 1.20; 4 b. 0.20; 5 c. 1.80; 4 d. 0.25; 5 e. 0; 10
A country that wants to create the highest level of economic integration would enter into a(n) Multiple Choice common market. free trade area. economic union. political union. customs union.
A. common market. B. free trade area. C. economic union. D. political union. E. customs union.