In what way, if any, does the invisible hand affect government resource allocation?
A. It enhances government efficiency by promoting competition for resources within
government.
B. It does not help resource allocation, as there are no competitive forces within government
that automatically direct resources to their best uses.
C. It rewards government bureaucrats who are most efficient at implementing public policies.
D. It reduces government efficiency by sending market signals that interfere with government
decision making.
Answer: B
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The above figure illustrates the demand curve for a good. The good has
A) no substitutes. B) only one substitute. C) only a few substitutes. D) many substitutes.
What makes the demand curve of the perfectly competitive firm uniquely different from that of firms in other kinds of market structures?
If Hector's marginal rate of substitution between pens and pencils is constant, regardless of how many pens and pencils he has, then his indifference curves
a. are right angles. b. are straight lines. c. slope upward. d. cross one another at certain points.
In the above figure, what is the opportunity cost of one bushel of soybeans?
A. 2 bushels of corn B. 1 bushel of corn C. 0.5 bushels of corn D. unable to determine