Total net benefits gained in a market
a. minus any side payments equals total revenue from producing the good (or, equivalently, total expenditure on the good)
b. is the sum of producer and consumer surplus in that market
c. is the difference between consumer surplus and producer surplus in that market
d. are maximized when the market price equals zero
e. always exceeds the sum of total expenditure on the good and the total cost of providing it
B
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If a foreign company operating in a country changes work rules resulting in a more flexible allocation of resources in the various sectors of the domestic economy,________
A) the productivity of domestic workers is likely to decrease B) the productivity of domestic workers is likely to increase C) the gross domestic product of the economy is likely to decrease D) the Human Development Index of the country is likely to decrease
The existence of multiple federal bank regulatory authorities has been permitted to continue because
A) the regulators coordinate their activities well enough to avoid differences. B) different types of banks require different kinds of regulation. C) many regulatory authorities are necessary to insure the safety of depositor's funds. D) the legislative will to replace the current regulatory system has been lacking.
The cost of capital is determined by
A) bankers. B) the capital market. C) the federal budget deficit. D) the foreign exchange market.
Which of the following best describes the relationship between economic growth and literacy? a. As the economy grows, literacy declines because it becomes less and less useful in a developed economy
b. Increased literacy initially stimulates economic growth by raising labor productivity, but as the economy grows and the opportunity cost of education rises, literacy declines. c. Increased literacy stimulates economic growth by raising labor productivity, and as the economy grows, people consume more education. d. There is no correlation between economic growth and literacy.