How does a successful movie illustrate self-interested choices that are also in the social interest?
What will be an ideal response?
The a successful movie increases the income of the people involved with the movie. Hence these people's choices are driven largely by self interest. However the creation of a successful movie also increases the quantity of widely enjoyed entertainment. The amount of entertainment available in the economy increases which benefits society. So the choices the people made in their self interest also reflected choices made in the social interest.
You might also like to view...
If the FDIC eliminated its insurance program for deposits, then
A) banks would probably hold fewer reserves. B) moral hazard would be increased. C) individual depositors would have more incentive to ascertain the soundness and solvency of the bank. D) the banking system would probably fail.
China's recent experience supports the proposition that
A) "economic miracles" are solely to be expected in small countries. B) central planning and socialism can promote sustained economic growth. C) a lessening of income disparities is a prerequisite for economic growth. D) growth in a large country cannot be affected by its foreign sector. E) policy changed can dramatically prompt export oriented growth
To an economist, the field of industrial organization answers which of the following questions?
a. Why are consumers subject to the law of demand? b. Why do firms experience diminishing marginal productivities of their inputs? c. How does the number of firms affect prices and the efficiency of market outcomes? d. How can government intervention improve industrial production when externalities are present?
Using real GDP to compare the level of economic well-being in two countries may be misleading because the value of ________ contributes to economic well-being, but is excluded from real GDP.
A. services B. formal education C. leisure D. capital goods