The concept of externalities means that subsidizing education can be justified on the grounds that as a student becomes better educated, the student will
A) earn a higher income.
B) enhance the lives of people around the student.
C) make contributions to the student's alma mater.
D) none of the above
B
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The law of diminishing marginal returns is the same as increasing returns to scale.
Answer the following statement true (T) or false (F)
In the arena of asymmetric information, standardization (for example, menus at McDonald's restaurants) is a substitute for
A) quality. B) government regulation. C) reputation of individual sellers. D) firms' distinguishing among buyers. E) firms' segregation of buyers.
The rule of reason refers to the interpretation of the courts that dominant firms should be broken up because of their:
a. market share dominance. b. illegal business practices. c. monopolistic behavior. d. All of these.
Under a floating exchange-rate system, a country needs to pay more attention to the economic policies of the rest of the world
a. True b. False Indicate whether the statement is true or false