In a certain city, the government is considering acquiring some land and turning it into a park (without any fences or gates). In an attempt to determine the extent to which residents of the city would value the park, residents are asked to fill out a questionnaire. Which of the following is correct?
a. On the questionnaire, some residents are likely to exaggerate the value they associate with the park.
b. On the questionnaire, some residents are likely to exaggerate the costs they associate with the park.
c. The use of such a questionnaire in cost-benefit analysis is likely to produce only rough approximations of residents' perceptions of the costs and benefits of a park.
d. All of the above are correct.
d
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Which of the following statements best expresses why economic efficiency should be society's first goal?
A. Efficiency maximizes total economic surplus and thereby allows other goals to be more easily achieved. B. Since the consensus on what is a fair distribution of goods is impossible, efficiency is the next best goal. C. People are not really concerned about the problems of the poor, so government must address them instead. D. Efficiency gives the poor an incentive to improve their economic status.
Which of the following is the best explanation for why the price of gasoline increases during the summer months?
A) Oil producers have higher costs of production in the summer. B) Sellers have to earn profits during the summer to cover losses in the winter. C) There is increased driving by families going on vacation. D) There is less competition among oil refineries in the summer. E) The number of gas stations open 24 hours a day rises in the summer months and so the price must rise to cover the higher costs.
The desire to hold money instead of other assets in anticipation of changes in economic conditions is the ________ motive.
Fill in the blank(s) with the appropriate word(s).
Scarcity always exists because
a. machines and people are inefficient. b. changes have occurred in global weather patterns. c. our needs and wants are not limited, but our resources are limited. d. there are more poor people than rich people.