The existence of scarcity means that
A) there are not enough resources to satisfy unlimited human wants.
B) firms will increase their production to eliminate the scarcity.
C) the government will step in to eliminate the scarcity.
D) firms working with the government will allocate resources to eliminate the scarcity.
A
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Dick owns a dog whose barking annoys Dick's neighbor Jane. Dick receives personal benefit from owning the dog, and Jane bears a cost of Dick's ownership of the dog. Assuming Jane has the legal right to peace and quiet, which of the following statements is correct?
a. If Dick's benefit exceeds Jane's cost, government intervention is necessary. b. Dick will pay to keep his dog if his benefit exceeds Jane's cost. c. If Jane's cost exceeds Dick's benefit, Dick will pay Jane to keep his dog. d. If Jane has the legal right to peace and quiet, no further transactions will be mutually beneficial.
Utilitarianism is a type of
a. consequentialism b. relativism c. deontological ethics d. egoism
Assume that the MPC is 0.9. If government purchases increase by $100, equilibrium output ________; and if taxes increase by $100, equilibrium output ________.
A. increases by $1,000; decreases by $900 B. increases by $1,000; decreases by $1,000 C. increases by $400; decreases by $400 D. increases by $900; decreases by $1,000
The 1998 tobacco settlement requires that tobacco companies pay ________ to the states in the settlement over a period of twenty years.
A. $250 million B. $2.5 billion C. $250 billion D. $2.5 million