When government provides goods and services, they are often produced in which of the following ways and why?
a. inefficiently because the government only produces when the benefits nation-wide outweigh the costs
b. efficiently because the government always makes efficient decisions
c. efficiently because the government allows special interest groups to determine what is produced
d. inefficiently because there is no competition and no potential of going out of business
d. inefficiently because there is no competition and no potential of going out of business
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Discuss the distribution of income around the world. Which countries have the highest average incomes? Which countries have the lowest average incomes? How has the distribution of income changed in recent years?
What will be an ideal response?
Which of the following is possible in a 2-input production technology.
A. The technology has increasing returns to scale but diminishing marginal product of all inputs. B. The technology has increasing returns to scale but diminishing marginal product of all but one input. C. The technology has decreasing returns to scale but increasing marginal product of one input. D. (a) and (b) E. (a) and (c) F. (b) and (c) G. None of the above H. All of the above
If the money prices of resources changes
A) the LAS curve shifts. B) the SAS curve shifts. C) the AD curve shifts. D) the macroeconomic equilibrium is unaffected.
The concentration ratio is the percentage of ___ earned by the ___ largest firms in the industry.
A. sales; four B. sales; ten C. profits; four D. profits; ten