Suppose that a mayor of a large city believes strongly that education provides great benefits to the community and urges the state government to provide the district with more money. An economist would say that this reflects the Mayor's belief that:
a. since teachers are overpaid, the district needs more money to hire enough teachers for its classrooms.
b. there are positive external benefits
associated with education.
c. there are nontrivial external costs associated with education.
d. public schools provide a higher quality education than private schools.
b
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Use the following graph showing the average total cost curve for a perfectly competitive firm to answer the next question.
At the long-run equilibrium level of output, this firm's profit
A. is $400. B. is zero. C. is $200. D. cannot be determined from the information provided.
Refer to Table 1-6. What is Ivan's marginal cost if he decides to stay open for six hours instead of five hours?
A) $10 B) $20 C) $25 D) $91.67
Which of the following results from having scarce economic resources?
a. The production of unlimited goods and services b. The production of limited goods and services c. Deflation d. Poverty and unequal distribution of wealth
A person who is willing to take a bet with an expected value of one is called risk-neutral.
Answer the following statement true (T) or false (F)