How is a politician similar to an entrepreneur?
A) Each advances a project solely in the public interest.
B) Each advances a project only if the expected marginal benefits equal the expected marginal costs.
C) Each advances a project only if the expected marginal benefits exceed the expected marginal costs.
D) Each advances a project only if they impose no negative externalities.
C
You might also like to view...
A patent is a government-imposed entry barrier because
A) it is a key input owned by the firm that is granted the patent. B) it allows a firm to achieve economies of scale. C) it gives a firm the exclusive right to a new product for a period of 20 years from the date the product is invented. D) it limits the quantity of a good that can be imported into a country.
"Saving" refers to ____ while "savings" refers to ____
a. a stock concept; a flow concept b. how much is saved within a certain time period; accumulated assets c. a stock concept; accumulated assets d. how much is saved within a certain time period; a flow concept
Use the figure below to answer the following question.
The diagram shows three supply curves for apples. Which of the following would cause the supply of apples to shift from S1 to S3?
A. a new bacteria that destroys apple crops B. a decrease in the price of apples C. an increase in the number of acres of farmland allocated to apple trees D. a new genetically modified apple seed that is resistant to drought
Answer the following statement(s) true (T) or false (F)
1. The points that are directly on a production possibilities curve represent varying levels of efficiency. 2. A production possibilities curve that is bowed outward illustrates the law of increasing opportunity cost. 3. The Law of Increasing Opportunity Cost refers to the condition where the opportunity cost of producing additional units of a good rises as society produces more of that good 4. The economy can grow only with qualitative or quantitative changes in the factors of production.