Each member in a group might do what's best for himself or herself instead of behaving in a way that optimizes the well-being of the entire group. This gives rise to the problem of:
A) Pareto inefficiency.
B) free riding.
C) irrational behavior.
D) disequilibrium.
B
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Which of the following is true? a. People specialize by concentrating their energies on the activity to which they are best suited, because they incur lower opportunity costs as a result. b. One advantage of specialization is that workers acquire greater skill from repetition
c. If a person, a region, or a country can produce a good or service at a lower opportunity cost than others, we say that they have a comparative advantage in the production of that good or service. d. All of the above are true.
If unemployment is the major problem in the economy, which of the following would be an appropriate monetary policy response?
a. decrease taxes b. decrease the discount rate c. sell government bonds d. all of the above
When employment discrimination results from the personal prejudices of employers, economic theory suggests that
a. it is costless for employers to discriminate against groups they do not like. b. the wages of employees who are discriminated against will rise. c. an employer who discriminates will experience higher costs. d. discrimination by an employer will reduce production costs since the employer can pay lower wages.
During the crisis of 2008 housing prices ________ and stock prices ________. (Fill in the blank)
a. rose sharply; fell sharply b. fell sharply; rose sharply c. fell sharply; fell sharply d. rose sharply; rose sharply