Which of the following offers theories to explain why the government, like the private sector, may also "fail"?
A. social economics
B. public choice theory
C. rational expectations theory
D. Keynesian economics
Answer: B
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A single-price monopoly
A) must practice price discrimination. B) can lower its price for only a few select consumers if it wants to increase its sales. C) will set its price equal to a consumer's willingness to pay. D) must lower the price for all customers if it wants to increase its sales. E) is able to raise its price as high as it wants and consumers must still buy from it because it is a monopoly.
The funds used to buy and operate physical capital are
A) depreciation. B) financial capital. C) saving. D) wealth.
The long-run average cost curve shows the lowest possible average cost for each output level, given that all inputs are variable.
Answer the following statement true (T) or false (F)
Public goods are
a. valuable socially. b. not depletable and not excludable. c. subject to the "free rider" problem. d. All of the above are correct.