Buyers and sellers acting in their own best interest generate outcomes that are in society's best interest when:
A. there are informed buyers and sellers.
B. there is perfect competition.
C. there are no external costs.
D. All of these.
Answer: D
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The principal cause of falling unemployment is ________
A) an increase in net entrants to the labor force B) a decrease in net entrants to the labor force C) an increase in the number of new jobs created D) a decrease in the number of jobs lost
A surplus is a result of equilibrium price being below the current price.
a. true b. false
The above figure shows the payoffs to two firms deciding to open a gasoline station in an isolated town. If firm A decides first, what will happen? If there is a $60 fee to enter this market, what will happen?
What will be an ideal response?
Jane is attempting to maximize utility by selecting a market basket of goods. For each of the goods in the market basket the marginal utility per dollar spent is equal
There are some goods which are affordable but do not appear in the Jane's market basket. If Jane has maximized utility, the marginal utility per dollar spent on each of the goods that does not appear in the market basket is: A) too high. B) too low. C) zero. D) infinite. E) none of the above