When social costs of an activity exceed private costs
A) a market failure exists.
B) there is a tendency for resources to be under-utilized.
C) this means that resources are being efficiently used.
D) the actual price is above the efficient price.
Answer: A
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Which of the following best describes the difference between a demand curve and a demand schedule?
A) A demand curve shows different quantities of a good demanded at different prices, whereas a demand schedule shows different quantities of a good demanded at different incomes. B) A demand curve can be derived from a demand schedule, but a demand schedule cannot be derived from a demand curve. C) A demand curve shows different quantities of a good demanded at different incomes, whereas a demand schedule shows different quantities of a good demanded at different prices. D) A demand curve is a graphical representation of the relationship between the quantity of a good and its price, whereas a demand schedule is a tabular representation.
Which of the following statements is true?
A) Optimization requires individuals to foresee the future perfectly. B) An optimizing individual need not consider the risks involved in various choices. C) An optimizing individual is also likely to exhibit rationality. D) The less information that is available, the easier it is to make optimal decisions.
The main public policies targeted at achieving growth in high-income countries are _________ policies focused on investment, including investments in human capital, technology, and physical plant and equipment.
a. immigration b. taxation c. command d. fiscal
Which of the following statements is true?
A. Economic profit is always positive. B. Economic profit is greater than or equal to accounting profit. C. Accounting profit is greater than or equal to economic profit. D. Accounting profit is always positive.