Which of the following does Dwight Lee suggest as a solution to correct excessive pollution?
a. Reduce the use of petroleum-based fuels
b. Place a tax on all large trucks and SUVs.
c. Expand markets & property rights into areas where externalities (i.e., pollution) exist
d. This is a market failure, these is no clear solution
Ans: d. This is a market failure, these is no clear solution
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In a business cycle, the date at which a recession starts is called a trough
Indicate whether the statement is true or false
The term human capital refers to
A) labor resources used to make capital equipment. B) buildings and machinery. C) people's knowledge and skill. D) entrepreneurship and risk-taking.
Which of the following is not a reason for international specialization?
a. some countries have educated, trained workers, while other countries have unskilled workers b. tastes and preferences tend to be different in different countries c. economies of scale can allow larger, specialized producers to operate at lower average cost d. mineral resources are often concentrated in particular countries e. the world price of a good is determined by the world supply and demand for it
Which of the following offers an example of economies of scope?
a. When production of economics textbooks, management textbooks, and finance textbooks can be done by a single publishing company at lower average cost than by separate publishing companies that specialize in just one topic. b. The minimum average cost of producing a unit of output is first realized when 600,000 units are produced each month. c. When a firm finds that it is more profitable to contract for certain inputs or functions supplied by others than to produce those inputs or functions itself. d. When the average cost per unit of output falls as the firm increases its scale of production of economic textbooks.