Suppose you are a mayor of a city with a police force of 100 and an annual budget of $8 million. Now suppose your police chief asks for an additional officer with an additional annual expenditure of $50,000 for salary, benefits, and equipment. If you are thinking like an economist, you will agree to the request if the chief can demonstrate that
A. the additional officer will produce at least $50,000 worth of extra safety annually.
B. the average amount of safety produced per officer is more than $50,000.
C. the total amount spent on police protection is worth $8,050,000.
D. crime will be reduced.
Answer: A
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Some researchers argue that the American Revolution was probably inevitable. The most important factor, of those listed below, was/were
(a) prohibitions against trade with nations other than England and severe exploitation of the colonists under the Navigation Acts, which kept the standard of living low in the colonies. (b) excessive taxation which for generations kept the after-tax incomes of the colonists below those in England. (c) a series of revenue-raising measures imposed on the colonists at the end of the French and Indian War for the purpose of making the colonies more self-supporting. (d) British prohibitions against the use of slaves in the lands west of the original thirteen colonies.
Which of the following is a predictable impact of the Patient Protection and Affordable Care Act?
a. A reduction in the prices of health care services. b. A reduction in total expenditures on health care. c. An increase in the number of part-time employees relative to full-time workers. d. A lower overall rate of unemployment.
Debt servicing refers to the repayment of principal on the debt.
Answer the following statement true (T) or false (F)
This figure shows the payoffs involved when Sarah and Joe work on a school project together for a single grade. They both will enjoy a higher grade when more effort is put into the project, but they also get pleasure from goofing off and not working on the project. The payoffs can be thought of as the utility each would get from the effort they individually put forth and the grade they jointly receive.The outcome of the game in the figure shown will be:
A. Joe and Sarah both put forth low effort. B. Joe puts forth high effort and Sarah puts forth low effort. C. Joe and Sarah both put forth high effort. D. Joe puts forth low effort and Sarah puts forth high effort.