A collective consumption good may be inefficiently produced by the private sector because _____
a. it is inefficient to raise price above marginal cost
b. of free riding problems
c. fixed costs are too high
d. private producers are greedy
a
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Disappointed with problems caused by being a recipient of foreign aid from donor governments, the country of Upsilon should consider
a. refusing all future offers of aid b. privatizing of aid, such as receiving funds from private not-for-profit agencies c. becoming a donor instead d. seeking even more government-sponsored aid e. All of the answers are correct
The value of the resources flowing into firms is precisely the value of the goods and services flowing out of the firms
Indicate whether the statement is true or false
Until the beginning of the 20th century, the overriding and chronic money problem the United States faced was
a. an overreaching and politically controlled Federal Reserve System b. an inability to persuade the Treasury to make open market operations c. the banks' inclination to overissue currency d. the inability of the Federal Open Market Committee to agree among themselves on policy issues e. the linking of fiscal and monetary policy by the central bank
The law of diminishing marginal returns results in average total cost eventually
A. decreasing at an increasing rate. B. increasing at an increasing rate. C. increasing at a decreasing rate D. decreasing at a decreasing rate.