A profit-maximizing firm employs resources to the point where
A. MRP = MRC.
B. MP = product price.
C. MRC = MP.
D. resource price equals product price.
Answer: A
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The reason protectionism remains strong in the United States is that
A) economists can produce any result they are hired to produce. B) economists cannot persuade the general public that free trade is beneficial. C) economists do not really understand how the real world works. D) the losses associated with protectionism are diffuse, making lobbying by the public impractical. E) economists cannot agree on trade policy recommendations.
Consumer surplus is the amount a buyer actually has to pay for a good minus the amount the buyer is willing to pay for it
a. True b. False Indicate whether the statement is true or false
The degradation of the environment from litter is a
a. a negative externality. b. free rider problem. c. Tragedy of the Commons. d. Both a and c are correct.
which of the following best summarizes the importance of business failure and the central idea of "creative destruction in a market economy?"
What will be an ideal response?