If the voluntary contributions experiment described at the end of the chapter is played multiple times, we would expect:
A. the voluntary contributions will be zero or close to zero.
B. the voluntary contributions will exceed the amount required to provide the public good.
C. the voluntary contributions will equal the amount required to provide the public good.
D. the voluntary contributions will fall short of the amount required to provide the public good, but only by a small amount.
Answer: A
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The health care system in Canada is referred to as ________, and is a system in which the government provides national health insurance to all Canadian residents
A) an out-of-pocket system B) a single-payer health care system C) a universal health insurance system D) socialized medicine
Using the HO model, assume that the United States is capital abundant and Mexico is labor abundant. If soybeans are capital intensive and avocados are labor intensive, it would be reasonable to expect the United States to
A) specialize completely in soybean production. B) specialize completely in avocado production. C) increase soybean production, but still produce some avocados. D) increase avocado production, but still produce some soybeans.
Suppose that the capital stock initially is 1000, the depreciation rate is 0.08, and investment is 220. This makes the net growth of the capital stock
A) 300. B) 237.6. C) 202.4. D) 140.
The term ceteris paribus means
A) the greatest good for all. B) the study of scarcity and choice. C) all other things remaining constant or equal. D) value-free and testable.