External costs occur because
A. Firms make a choice other than the most cost-efficient production method.
B. Private costs do not reflect the full costs to society.
C. All costs are absorbed by the firm.
D. Government failure increases costs for the firm.
Answer: B
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Two players are trying to maximize their payoffs in the matrix below: Player 2? Move AMove BPlayer 1Move A (50,20)(40,80)?Move B(25,80)(10,10)What is the Nash equilibrium?
A. Player 1 will Move A and Player 2 will Move A B. Player 1 will Move B while Player 2 will Move B C. Player 1 will Move A while Player 2 will Move B D. Player 1 will move B and Player 2 will Move B
Exhibit 2-13 Production possibilities curve
In Exhibit 2-13, in terms of efficiency:
A. point A is preferred to point B. B. point A is preferred to point E. C. point A is preferred to point D. D. point B is preferred to point A.
Federal, state and local purchases of goods and services sum to about ________ trillion.
A. 7 B. 12 C. 3 D. 4
When disposable income is 1000, how much is saving?
