How does government's power to coerce behavior tend to reduce private-sector risk?
A) By guaranteeing that the government will financially cover any losses by private-sector firms.
B)By enforcing contracts and discouraging illegal behavior that threatens private property.
C) By strictly regulating the allocation of most property resources in the economy.
D) The coercive power of government only increases private-sector risk.
B)By enforcing contracts and discouraging illegal behavior that threatens private property.
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The above table gives some cost data for Peter's Pickles. Peter's fixed cost is $20. Average variable cost (AVC) is lowest when output is equal to
A) 1 barrel of pickles. B) 2 barrels of pickles. C) 3 barrels of pickles. D) 4 barrels of pickles.
Explain the dynamic rationale for economic integration among developing countries
What will be an ideal response?
A plant uses machinery and waste water to produce steel. The owner of the plant wants to maintain an output of 10,000 tons a day, even though the government has just imposed a $100 per gallon tax on using waste water
The reduction in the amount of waste water that results from the imposition of this tax depends on A) the amount of waste water used before the tax was imposed. B) the cost to the firm of using waste water before the tax was put in place. C) the rental rate of machinery. D) the marginal product of waste water only. E) the ratio of the marginal product of waste water to the marginal product of machinery.
If international trade is restricted by the government:
a. domestic consumers are benefited. b. domestic producers are adversely affected. c. consumers in the importing country are required to pay higher prices for the goods. d. consumers can access to better quality product at lower prices. e. the resources are allocated to their highest paid uses.