Prices play a role in a market
A) because they distribute scarce goods to those consumers who value them most highly.
B) because when prices are in equilibrium, product shortages or surpluses can occur.
C) because they help eliminate poverty.
D) because they eliminate scarcity.
A
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Refer to Figure 7-2. Marginal private benefit is represented by which curve?
A) D2 B) Supply C) D1 D) All of the above represent marginal private benefit.
A capital outflow occurs when a
A) domestic resident purchases a domestic asset. B) domestic resident purchases a foreign asset. C) foreign resident purchases a domestic asset. D) foreign resident purchases a foreign asset.
Refer to Table 7.1 below. By what percentage does real annual expenditures in public elementary and secondary schools rise between 1980 and 1985? Between 2005 and 2010? What can be said about the rate of change?
According to the economic theory of labor markets, under what conditions will an individual spend time in nonmarket work?
a. When the utility from leisure exceeds the net utility from work. b. When the net utility from market work exceeds the net utility from nonmarket work. c. When the market can produce goods and services more cheaply than the individual. d. When the individual can produce goods and services more cheaply than the market can.