A situation in which the price charged is less than society's opportunity cost would lead to
A) too little being produced.
B) too much being produced.
C) an efficient amount being produced.
D) marginal cost pricing.
Answer: B
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The marginal revenue curve of a monopolist is
a. a straight horizontal line. b. above the AR line. c. identical to the AR line. d. below the AR line.
According to the principle of Rawlsianism:
A. society should place equal weight on the well-being of every individual. B. society should place all weight on the well-being of its worst-off member. C. society should place all weight on the well-being of its best-off member. D. equal division of society's resources among all members of the population is the most equitable outcome.
The costs of investment depend on the ________ and the ________.
A. relative price of the firm's output; real interest rate B. price of new capital goods; real interest rate C. taxes levied on the revenue generated; relative price of the firm's output D. marginal product of capital; relative price of the firm's output
The absence of clear property rights:
A. is caused by capital deepening. B. is common in many developing nations. C. encourages creative destruction. D. All of these