A limited military draft is likely to be inefficient because
a. it transfers wealth from those who are drafted to those who benefit from the army's services.
b. the wage rate paid to army personnel is set by the government, not by the market.
c. more people will be drafted than would have joined a volunteer army.
d. there is no guarantee that young adults with the lowest opportunity costs will be drafted.
d. there is no guarantee that young adults with the lowest opportunity costs will be drafted.
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A firm's net worth is calculated as
A) the difference between a firm's revenues and explicit costs. B) the difference between a firm's liabilities and outstanding equities. C) the difference between a firm's assets and liabilities. D) the difference between a firm's revenues and implicit costs.
If you decide not to spend $1,000 you earned at your summer job but instead intend to buy shares in a mutual fund, in terms of aggregate economic accounting you would be:
A. saving. B. transferring. C. consuming. D. investing.
Economists see a useful service being performed by ticket scalpers, in that they
A. adjust a price that a promoter has set too high. B. lower the price to all consumers. C. raise the price so promoters get more money. D. adjust a price that a promoter has set too low.
Suppose that the technology used to produce computers advances. How does this change affect the supply of computers and the supply curve of computers?
What will be an ideal response?