What does an economic safety net provide, and why would a country want to have one?
What will be an ideal response?
A safety net provides a measure of security for the poor, the sick, and the vulnerable. A country would provide a safety net for its less fortunate citizens because it is not generally morally or politically acceptable for most of the population to live good lifestyles while a smaller number are much worse off.
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Canada has nationalized health care, so that everyone, regardless of their ability to pay, has some access to health care
Based on this observation, Canada has decided that "everyone, regardless of their ability to pay" is the answer to what microeconomic question? A) What type of health care will be produced and in what quantity? B) How will health care be produced? C) For whom will health care be produced? D) Why will we offer health care? E) Must we offer health care?
________ increases economic efficiency because it forces firms to produce and sell goods and services as long as the additional benefit to consumers is greater than the additional cost of production
A) Competition B) A centrally planned economy C) Equity D) Voluntary exchange
A country that shows a deficit in its financial account is a net creditor to the rest of the world
a. True b. False Indicate whether the statement is true or false
Answer the following statement(s) true (T) or false (F)
1. The points that are directly on a production possibilities curve represent varying levels of efficiency. 2. A production possibilities curve that is bowed outward illustrates the law of increasing opportunity cost. 3. The Law of Increasing Opportunity Cost refers to the condition where the opportunity cost of producing additional units of a good rises as society produces more of that good 4. The economy can grow only with qualitative or quantitative changes in the factors of production.