Every social system confronts scarcity and therefore must
A. produce only free goods.
B. try to produce outside its production possibilities frontiers.
C. economize.
D. allocate goods by government edict.
C. economize.
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Lilly Davis has $5 per week to spend on any combination of ice cream and candy. The price of an ice cream cone is $2 and the price of a candy bar is $1. The table below shows Lilly's utility values
Use the table to answer the questions that follow the table. Quantity of Ice Cream Cones Total Utility Marginal Utility Marginal Utility per Dollar Quantity of Candy Total Utility Marginal Utility 1 20 1 20 2 38 2 38 3 52 3 48 4 62 4 54 a. Complete the table by filling in the blank spaces. b. Suppose Lilly purchases 2 ice cream cones and 1 candy bar. Is she consuming the optimal consumption bundle? If so, explain why. If not, what combination should she buy and why?
The biggest percentage of corporate receipts in the United States is accounted for by which type of organization?
a. sole proprietorships b. small corporations c. large corporations d. small partnerships e. large partnerships
If the government raised land taxes $20/acre, this would increase the farmer's average fixed cost. How would that affect (a profit maximizing) farmers' decision about the quantity of corn to produce in the short run?
a. It would have little change because in the short run the farmer will consider only the Average Variable Cost (AVC) in making a decision on quantity supplied b. It will decrease the quantity the farmer is willing to supply because the Average Variable Cost (AVC) will increase for the farmer c. It will decrease the quantity the farmer is willing to supply because the farmer considers all costs in the short run in making a decision about quantity supplied d. None of the above
The fundamental criticism from the efficiency perspective of AFDC and other antipoverty programs is that
A. they do not help families with unemployed fathers. B. the benefits are too low. C. they offer disincentives to earning income. D. the tax on this income is too low.