When economists say entrepreneurs have a comparative advantage in arbitrage activity, they are saying
A) entrepreneurs are efficient at selling their products below cost.
B) entrepreneurs are efficient at selling their products at cost.
C) entrepreneurs are efficient at discovering opportunities to buy goods low and sell them at higher prices.
D) entrepreneurs are efficient at resolving disputes of interest over titles to scarce property rights.
C
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Which of the following is not a limitation of the Pareto criteria?
a. Almost any policy change will make at least one person worse off. b. The status quo is lent legitimacy from being the starting point for evaluating social welfare. c. The criteria cannot tell us if a particular policy change will make all participants better off. d. The criteria do not allow for the ranking of all possible states of the world.
From the Industrial Revolution to the present, innovation has played a major role in the growth of output. What do the leading analysts of economic growth argue were some of the most significant innovations of this period?
In a two time-period example, economic efficiency is maximized when
a. The marginal net benefits are maximized in both time periods b. The discount rate is set equal to the marginal benefits c. The marginal net benefit in the first time period is set equal to the present value of marginal net benefits in the second time period d. The marginal net benefits in the first period are set equal to the discount rate in the second time period e. The marginal net benefits in the first period are set equal to the user costs in the second time period
The 10% tax surcharge in 1968 was only for 1 year, and people deemed the tax was temporary. As a result, the tax:
A. did not have much effect on people's consumption. B. resulted in a large drop in people's consumption. C. resulted in a large increase in people's consumption. D. caused people's consumption to become zero.