Generally speaking, resources are used more wastefully and carelessly when
A) users obtain the resources through the market process.
B) users do not have to pay the opportunity cost for using resources.
C) users use resources to only advance the projects they are interested in.
D) users privately own resources.
B
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Assume someone organizes all farms in the nation into a monopoly. Which of the following occurs? i. Consumer surplus decreases. ii. Economic profit increases. iii. A deadweight loss is created
A) i only B) ii only C) iii only D) i and ii E) i, ii, and iii
Economists believe that countries recently suffering hyperinflation have experienced
A) reduced growth. B) increased growth. C) reduced prices. D) lower interest rates.
Which of the following best illustrates the concept of derived demand?
a. As income rises, the demand for TVs rises. b. A fall in the price of cameras will increase the demand for film. c. A fall in the demand for tires will reduce the demand for rubber. d. When the price of gasoline rises, the demand for automobile repair falls. e. If consumers expect the price of coffee to rise, demand for coffee rises.
If the social cost is greater than the private cost in a particular market, the private equilibrium will be at a quantity:
A. greater than or less than the socially optimum level, depending on the size of the external costs. B. equal to the socially optimal level. C. greater than the socially optimal level. D. less than the socially optimal level.