In what sense is capital accumulation costly to a society?
Capital accumulation requires that society consume less now and save more of its current income. The foregone consumption is the cost of future capital accumulation.
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Gold buyers are located in New York and Zurich. If the price of gold is $400 an ounce, the worldwide demand for gold is 10,000 ounces. Also, the price elasticity of demand for gold in New York and Zurich are -3 and -2 respectively
If the slope of each demand curve in New York is the same as in Zurich, then the quantity of gold demanded by dealers in Zurich is A) 10,000/3. B) 5,000. C) 6,000. D) 10,000. E) none of the above
When the supply curve shifts to the left and there is no change in demand:
A. the market cannot reestablish an equilibrium. B. the equilibrium quantity will rise. C. the equilibrium price will fall. D. the equilibrium price will rise.
How is the issue of the "free rider" relevant to the discussion of whether access to medical care is a fundamental right?
a. The socially responsible approach is to provide free access to all the medical care a person desires. b. As long as there is excess capacity in the medical care system, providing free access to care does not present a resource allocation problem. c. The free rider argument is based on the idea that access to medical care should be free and available to everyone. d. Providing medical care at zero cost will maximize social welfare.
A price discriminating pure monopolist will attempt to charge each buyer (or group of buyers):
A. different prices to compensate for differences in the characteristics of the product. B. the same price if per unit cost is constant for each unit of the product. C. that price that equals the buyer's marginal cost. D. the maximum price each would be willing to pay.