After computing the social savings from the railroads, Fogel concluded that ______
a. the railroads were indispensable to the economic development of the United States
b. the railroads were not indispensable in 1850 but by 1890 were dispensable
c. the railroads could explain only a small fraction of the growth in real income in the United States
d. economics is not sufficiently scientific to make a meaningful calculation of the social savings
c. the railroads could explain only a small fraction of the growth in real income in the United States.
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The preceding table gives monthly production information for Peter's Peanuts, a firm in a perfectly competitive industry. The market price of peanuts is $2.00 per pound
If a worker costs $800 per month, how many workers will Peter employ to maximize profit? A) zero B) one C) two D) four
A subsidy is sometimes used by government to correct the problems associated with
A) negative externalities. B) positive externalities. C) internal benefits. D) external benefits.
Externalities are created when parties not involved in an economic transaction are affected by it.
Answer the following statement true (T) or false (F)
What is the 'net marginal benefit' for a student of buying a new book vs a used book for a class if 1) for the new book, cost = $130, required web access cost = $0, resale value = $50 and 2) for the used book, cost = $90, required web access cost = $30, and resale value = $10?
a) +$80 b) -$40 c) +$30 d) -$10 e) -$30