Economists believe that the best way to stimulate investment in physical capital is to encourage:
A) higher rates of investment in human capital.
B) more spending on infrastructure.
C) the conservation of natural resources.
D) higher rates of national savings.
Ans: D) higher rates of national savings.
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Which of the following labor markets is more likely to be competitive?
A) Receptionists B) Singers C) Soccer players D) Sculptors
Break-even quantity is a point where
a. the level of profit is maximized b. the level of cost is minimized c. Only variable costs are covered d. There are zero profits
Return to the ready-to-eat cereal example from the previous question. Now assume that there is only one kind of cereal, so the manufacturer cannot distinguish between types of consumer (adults vs. children, of which suppose there are equal numbers in the market). What is the optimal menu of cereal boxes?
a. a 3 ounce box (which adults will buy) sold for 48 cents; a 4 ounce box (which children will buy) sold for $1.12. b. a 3 ounce box (which adults will buy) sold for 48 cents; a 4 ounce box (which children will buy) sold for 64 cents. c. a 2 ounce box (which adults will buy) sold for 36 cents; a 4 ounce box (which children will buy) sold for 76 cents. d. No menu; the manufacturer is better off just selling a 5 ounce box for $1.12, which is only purchased by children.
Perhaps the biggest problem that is faced by those administering workfare programs is
A. that most of the people on welfare are not highly employable. B. too much money is allocated for education and training. C. that welfare recipients have no incentive to work. D. the states are not required to follow any guidelines in administering the program.