Generally speaking, markets do a(n) ____ job of reconciling the demands of fairness and efficiency
a. excellent
b. above-average
c. average
d. poor
d
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What is the national security argument for restricting international trade? What is its flaw?
What will be an ideal response?
Refer to Figure 2-3. Sergio Vignetto raises cattle and llamas on his land. His land is equally suitable for raising either animal. Which of the graphs in Figure 2-3 represent his production possibilities frontier?
A) Graph A B) Graph B C) Graph C D) either Graph A or Graph C E) either Graph B or Graph C
If each additional unit of capital increases a firm's yearly output by a smaller amount than the previous unit of capital, and other inputs are held constant, then the firm is experiencing
a. diminishing returns to scale b. negative marginal productivity of capital c. diminishing marginal productivity of capital d. capital depreciation e. diminishing marginal productivity of labor
Which of the following statements explains why it is so difficult for governments to provide the optimal quantity of a public good?
A) Governments have no way of collecting payments for public goods B) Public goods are non-rival but excludable, which makes them costly to produce C) The marginal cost of providing a nonrival good is usually too high for the price conscious consumers D) The marginal benefit of each individual user must be known, and it is often overstated by individuals