Suppose that in most car collisions between cars of unequal size, the smaller car sustains the most damage and its occupants suffer the most injury. In answering the following question, assume that, on average, smaller cars generate less air pollution than larger cars and that every person in the economy drives at least one car. As the average size of cars increases, an individual's incentive to buy a smaller car:
A. increases in order to prevent injury to others.
B. decreases because of the increased risk of injury in a collision.
C. remains the same because car purchases depend on individual preferences.
D. increases to offset the external cost of air pollution.
Answer: B
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Economic profit is always positive when
A. accounting profit is positive. B. accounting profit is zero. C. accounting profit is greater than the firm’s opportunity costs. D. accounting profit is less than the firm’s opportunity costs.
A copyright is a legal grant to the holder of exclusive rights for a(n) ________ period of time for a(n) ________.
A) specified; work of authorship B) unspecified; innovation C) specified; innovation D) unspecified; work of authorship
A special interest group cannot impose its will on the majority because the perceived costs and benefits from government programs are the same for both groups
a. True b. False Indicate whether the statement is true or false