The idea of the "invisible hand" tells us that individuals will pursue:
A. mutually beneficial trades with other individuals to maximize surplus.
B. as few government policies as possible so the market can act freely.
C. the most equitable outcome possible.
D. trades in which they will be the clear winner and the other will be a loser.
Answer: A
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Table 3-1 Peanuts Corn (Bushels) (Bushels) 0 55 10 50 20 42 30 28 40 0 ? Suppose a farmer is currently producing 50 bushels of corn and 10 bushels of peanuts. According to Table 3-1, the opportunity cost of 10 additional bushels of peanuts is
A. 8 bushels of corn. B. 42 bushels of corn. C. 50 bushels of corn. D. impossible to determine from the information given.
Suppose people had been paying $10 for a pizza at Little Weezer's. If their demand increases to the point where they will now pay $15 for the same pizza, then
A) the marginal cost of making pizzas would tend to increase. B) the quantity supplied of pizzas would tend to increase. C) both A and B are true. D) none of the above are true.
Both Google and Facebook make their money by charging advertisers to run their ads, and the bigger an audience they have, the more they can charge.
Answer the following statement true (T) or false (F)
Seignorage is an especially important source of government revenue in countries
a) with weak credit industries b) with low inflation rates c) with high tariffs on imports d) with a currency tied to the dollar e) that still use commodity money