The problems of externalities and poorly formed property rights are:
A. better solved by private rather than government action.
B. the only two legitimate reasons for creating government.
C. among several rationales for the existence of government.
D. minor in modern economies.
Answer: C
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Price discrimination by sellers is usually observed only in situations where
A) low-price customers can easily resell to high-price customers. B) prices are set by competing monopolies. C) sellers are bigots. D) sellers can effectively identify customers by their demand for the product.
In the Ricardian model, if a country's trade is restricted, this will cause all EXCEPT which?
A) limited specialization and the division of labor B) reduced volume of trade and reduced gains from trade C) nations to produce inside their production possibilities curves D) a country to produce some of the product of its comparative disadvantage E) raised costs as more diverse product is produced internally
In 1870, the richest country in the world was
a. Germany. b. Japan c. the United Kingdom. d. the United States.
Economic growth
A. Is an increase in output or real GDP. B. Involves reduced capacity in the short run. C. Causes a contraction in the production possibilities curve. D. None of the choices are correct.