Dogfighting is against the law in New Jersey, resulting in high-priced events held illegally in the state. What idea from Chapter 1 of the text does this story best illustrate?
A. There ain't no such thing as a free lunch.
B. Social and political forces sometimes rein in market forces.
C. The invisible hand is always invisible.
D. Maintaining objectivity is easiest in positive economics.
Answer: B
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Which of the following occur in the real world?
a. Neither market failures nor government failures b. Government failures but not market failures c. Market failures but not government failures d. Both market failures and government failures
Refer to the scenario above. If the rules of the gamble are changed such that in the case of heads, the individual wins $50, and in the case of tails, the individual loses $100, the expected value of the gamble changes to:
A) $25. B) -$25. C) $50. D) -$50.
The most comprehensive measure of aggregate output is
A) gross domestic product. B) net national product. C) the stock value of the industrial 500. D) national income.
Suppose the supply of non-OPEC oil increases due to new petroleum discoveries in other countries. What happens OPEC's share of the world oil market?
A) Increases B) Decreases C) Remains the same D) We do not have enough information to answer this question.