What are most goods in the economy?
a) public goods
b) natural monopolies
c) private goods
d) common resources
Ans: c) private goods
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Refer to the scenario above. Jill will derive ________ units of utility if she tries to move the tree while Jack does not try at all
A) 5 B) -5 C) -2 D) 10
Medical research helps to develop better treatments for neuromuscular disease. Medical researchers are constantly in search of funds. Many in the public, however, are unwilling to contribute money toward neuromuscular disease research until a member of their own family suffers from a neuromuscular ailment. If left strictly to the private market, it is likely that there will be: a. an
overallocation of resources to neuromuscular disease research, relative to the efficient level. b. an underallocation of resources to neuromuscular disease research, relative to the efficient level. c. an efficient quantity of resources devoted to neuromuscular disease research. d. an efficient quantity of resources devoted to neuromuscular disease research.
Refer to Figure 3-6. The figure above represents the market for canvas tote bags. Compare the conditions in the market when the price is $50 and when the price is $35. Which of the following describes how the market differs at these prices?
A) The difference between quantity supplied and quantity demanded is greater at $50 than at $35. B) At each price there is a surplus; firms will lower the equilibrium price in order to eliminate the surplus. C) At each price the supply of tote bags exceeds that demand for tote bags. D) At each price there is a surplus; the surplus is greater at $35 than at $50.
Given the production function Q = 21X + 9X2 - X3, where Q = Output, and X = Input
a. At what value of X does Stage II of the production function begin? b. At what value of X does Stage III of the production function begin? c. At what value of X does diminishing returns set in?