The experience of the former Soviet bloc countries illustrates that high rates of investment may fail to promote rapid economic growth when a country
a. uses central government planning rather than capital markets to allocate investment funds.
b. has a strong education system.
c. has secure property rights.
d. has a tax system that encourages savings.
A
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A marginal cost pricing rule for a natural monopoly sets ________
A) price equal to marginal cost and greater than average total cost B) marginal revenue equal to marginal cost C) marginal revenue equal to average total cost D) price equal to marginal cost
Insurance companies:
A. profit from the difference between the premiums paid and the expected value of clients' payouts. B. only profit by selling to risk neutral clients. C. must charge less than the expected value of payout, otherwise they would go out of business. D. All of these statements are true.
When a consumer allocates her limited budgetary resources to maximize her well-being, ____ is achieved
a. the elimination of scarcity b. market equilibrium c. consumer equilibrium d. the maximization of marginal utility
Public policy can reduce the economy's natural rate of unemployment
a. True b. False Indicate whether the statement is true or false