Economists generally do not agree to limit the private and voluntary actions of people, but, in the case of gambling, economists will admit that gambling
A. can be addictive, so regulation could be justified for that reason.
B. is immoral, so it must be prohibited.
C. teaches people about statistics.
D. has external benefits, so it must be subsidized.
Answer: A
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Nonsmoking sections in restaurants are designed to remove ____ from a market ____
a. smoke; with food service b. third parties; for food service c. externalities; with public goods d. third parties; externality e. nonsmokers; for food service
If an economic change lowers the production cost of a commodity but does not reduce its market price, economic value will be created
Indicate whether the statement is true or false
An increase in an economy's productive resources will lead the production possibilities curve to:
A. shift outward. B. become flatter. C. shift inward. D. stay the same.
Answer the following statements true (T) or false (F)
1) Refer to the diagram. If this represents a typical firm in the industry and the firm is producing at the profit-maximizing level of output in the short run, then in the long run we would expect more firms to enter the market.
2) Refer to the diagram. If this represents a typical firm in the industry and the firm is producing at the profit-maximizing level of output in the short run, then in the long run we would expect economic profits in this market to rise.
3)Refer to the diagram. If this firm is producing at the profit-maximizing level of output in the short run, then it is achieving productive and allocative efficiency.
