Refer to Scenario 11.1. Suppose all five ranchers know that their land that Mariana needs is worth a total of $2 million. If each rancher agrees to sell his or her parcel of land to Mariana for $500,000, the economic pie will
A) grow by $500,000.
B) grow by $1 million.
C) grow by $2 million.
D) shrink by $500,000.
B
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A potential employee that dresses well for an interview is attempting to reduce asymmetric information by
A. looking more intelligent. B. signaling their type. C. showing moral character. D. mandating that information be shared.
The distinction between discretionary fiscal policy and the use of automatic stabilizers is that:
a. only discretionary fiscal policy can stimulate the economy b. only automatic stabilizers can stimulate the economy. c. discretionary fiscal policy, once adopted, is built into the structure of the economy. d. automatic stabilizers, once adopted, are built into the structure of the economy. e. only discretionary fiscal policy can be used by the federal government.
If a country devotes its resources to acquiring more physical capital it will:
A. decrease its output per person. B. increase its productivity. C. increase its current consumption. D. All of these are true.
If a defined contribution pension cannot, for whatever reason, make good on their anticipated payments to retirees, the
A. retirees get an extra payment from Social Security. B. pensions are paid by the Pension Guaranty Trust Corporation. C. retirees must sue their former employer. D. retirees are out of luck.