3 questions that every economy faces
What will be an ideal response?
What will be produced?
How will it be produced?
For whom will it be produced?
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Draw a long-run average cost curve that first exhibits increasing returns to scale (economies of scale), then constant returns to scale, and finally decreasing returns to scale (diseconomies of scale). Label each region.
What will be an ideal response?
Evaluating tort law solely from the standard of economic efficiency,
a. tort law fails at spreading the risk. b. tort law deters specific behavior c. tort law punishes bad behavior. d. none of these is correct
Suppose that a worker in Country A can make either 25 bananas or 5 tomatoes each year. Suppose that a worker in Country B can make either 18 bananas or 6 tomatoes each year. Country B has an absolute advantage in:
A. the production of bananas, but not tomatoes. B. the production of both bananas and tomatoes. C. the production of tomatoes, but not bananas. D. neither good.
In Adam Smith's competitive market economy, the question of what goods to produce is determined by:
a. the "invisible hand" of the price system. b. businesses. c. unions. d. the government, through laws and regulations.