Libertarians believe that in considering economic fairness, one should primarily consider the
a. outcome of the system.
b. process by which outcomes arise.
c. maximin criterion.
d. maximization total social utility.
b
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Use Figure 13.2 which depicts a monopolist firm to help with the following question. Define the area of total costs that this firm will incur if it is maximizing profit. Use the letters that appear on the graph to identify the area
What will be an ideal response?
When a certain nation abandoned a policy of prohibiting international trade in automobiles in favor of a free-tree policy, the result was that the country began to import automobiles. The change in policy improved the well-being of that nation in the sense that
a. both producers of automobiles and consumers of automobiles in that nation became better off as a result. b. the gains to automobile producers in that nation exceeded the losses of the automobile consumers in that nation. c. the gains to automobile consumers in that nation exceeded the losses of the automobile producers in that nation. d. even though total surplus in that nation decreased, it was still true that consumer surplus and producer surplus increased.
Can a firm experience diminishing returns in the long run?
What will be an ideal response?
A co-payment is the
A. percentage of a covered expense that an individual will have to pay (after the deductible is met). B. percentage of a covered expense that an insurance company will have to pay (after the deductible is met). C. amount of covered expense that an insurance company will have to pay before the individual pays anything. D. amount of covered expense that an individual will have to pay before the insurance company pays anything.