If the value that people, on average, receive from a common property exceeds the marginal cost of its use, then
a. more people will use the common property.
b. social gain is as large as possible.
c. the common property creates zero economic rent.
d. demand for the common property will fall.
a. more people will use the common property.
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The steeply upward sloping yield curve in the figure above indicates that ________ interest rates are expected to ________ in the future
A) short-term; rise B) short-term; fall moderately C) short-term; remain unchanged D) long-term; fall moderately
If individuals are rational, they should choose actions that yield the:
A. largest economic surplus. B. smallest economic surplus. C. smallest total costs. D. largest total benefits.
With respect to health care decisions, which party is the "third" party?
A. The doctor B. The federal regulator C. The health insurance company D. The patient
If all consumers are uninformed about the quality of a product
A) firms can increase product by selling the same product under a different name at a different price. B) firms will not be able to price discriminate. C) firms will price discriminate. D) firms will increase profits by charging different prices for the same product.