A common resource is used efficiently if marginal social benefit equals marginal social cost
Indicate whether the statement is true or false
TRUE
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The economic system envisioned by the Constitution _________
a. embodied Adam Smith's emphasis on protecting private property b. used the Civil Code of France, rather than the English Common Law, as its foundation. c. enshrined the traditional 18th century model of mercantilism which allowed the government to have large control over private ownership of goods and services d. fostered Jefferson's idea of a democracy based primarily on agriculture
Aggregate private spending is unstable according to policy activists, primarily because
A) consumer non-durable spending is volatile. B) private residential and non-residential investment is volatile. C) government spending is volatile. D) the money supply is unstable.
Suppose when the price of a can of tuna is $1.30, the quantity demanded is 9, and when the price is $1.50, the quantity demanded is 7. Using the mid-point method, the price elasticity of demand is:
A. 29 percent B. 0.57 C. -0.57 D. -1.75
By tradition, Japanese employers cannot “lay off” workers. As a result they have goods that they cannot sell on the domestic market without driving down prices. To minimize losses, they sell goods such as steel and televisions in foreign markets at prices well below those in Japan. This is called
A. beggar my neighbor. B. helpfulism. C. strategic trade policy. D. dumping.