The price system automatically leads to an efficient allocation of inputs among the different production processes.
Answer the following statement true (T) or false (F)
True
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Writing in the New York Times on the technology boom of the late 1990s, Michael Lewis argues, "The sad truth, for investors, seems to be that most of the benefits of new technologies are passed right through to consumers free of charge"
What does Lewis means by the benefits of new technology being "passed right through to consumers free of charge"? A) In the long run, price equals the lowest possible average cost of production. In this sense, consumers receive the new technology "free of charge." B) Firms in perfect competition are price takers. Since they cannot influence price, they cannot dictate who benefits from new technologies, even if the benefits of new technology are being "passed right through to consumers free of charge." C) In perfect competition, price equals marginal cost of production. In this sense, consumers receive the new technology "free of charge." D) In perfect competition, consumers place a value on the good equal to its marginal cost of production and since they are willing to pay the marginal valuation of the good, they are essentially receiving the new technology "free of charge."
Trade barriers are an expensive and grossly inefficient way to reach most of the goals for which they are used
Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. The RCRA Amendments of 1984 continued to promote land disposal for hazardous wastes. 2. Identification of hazardous wastes under the law relies on risk-benefit analysis. 3. Standards on treatment, storage, and disposal facilities (TSDFs) are set to achieve allocative efficiency. 4. The land restrictions may act to provide an incentive to reduce hazardous waste generation. 5. A waste-end charge is a fee based on the quantity of waste generated that is imposed at the time of disposal.
Your city newspaper publishes a "Best of" poll that lists its readers' favorite restaurants. Mundo Bar and Grill is ranked as the best casual restaurant. Your best friend had dinner at Mundo Bar and Grill last week and commented that the food was mediocre and the service was slow. You decide not to have dinner at Mundo Bar and Grill based on your friend's experience. Your decision illustrates
that people a. are reluctant to change their minds. b. are overconfident. c. give too much weight to a small number of vivid observations. d. are satisficers.