Rational economic decision makers will make a change only if
a. the change is free of risk
b. there are no costs involved
c. their expectations are correct
d. there is no uncertainty about the results of the change
e. the expected marginal benefit exceeds expected marginal cost
E
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In perfect competition, the elasticity of demand for the product of a single firm is
A) 0. B) between 0 and 1. C) 1. D) infinite.
Studies suggest that brand loyalty is based primarily on real differences among competing products, suggesting that persuasive advertising is an ineffective means to maintain or increase market share
Indicate whether the statement is true or false
If the government created a surplus of an agricultural product due to price supports, how might they dispose of this surplus?
A) give it away to a foreign country B) purchase it and store it away C) have the farmer destroy the crop D) Any of these answers might be a successful tool in disposing of agricultural surpluses.
The small city of Pleasantville is considering building a public swimming pool that costs $1,000. Each resident's marginal benefit of the swimming pool is shown below. It takes a 4/5 majority to pass any tax measure, and all residents must vote.VoterMarginal BenefitKyle$420Dylan$360Fran$350Ronnie$190Sam$170 Building the swimming pool would ________ total economic surplus because ________.
A. decrease; taxes would have to be collected to build the pool B. increase; the cost of building the pool can be passed to users from other towns C. increase; the total social benefit of the pool is greater than the total cost of the pool D. decrease; the total cost of the pool is greater than the total social benefit of the pool