Building infrastructure is left to the government since ________
A) the cost of such projects would not be economical for any individual firm
B) borrowing costs make such projects prohibitively expensive
C) inflation tends to erode the real value of debt
D) a natural monopoly would result if this activity were undertaken by an individual private firm
A
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A nation can maximize the net benefits from immigration by:
A. Contracting immigration until the extra welfare cost for taxpayers is zero B. Expanding immigration until its marginal benefits equal its marginal costs C. Expanding immigration because it benefits society with a greater supply of products and increased demand for them D. Contracting immigration because the benefits are minor and it reduces the wage rates of domestic workers
Money is created when
A. Congress enacts legislation providing for increased bank reserves. B. depository institutions make loans. C. the Federal Reserve Board of Governors increases the discount rate. D. Congress reduces taxes.
The change in total cost that results from the production of one additional unit is called:
A. marginal revenue. B. average variable cost. C. marginal cost. D. average total cost.
Traders should specialize in the good in which:
A) they have the lowest opportunity cost. B) they have an absolute advantage. C) their trading partner has the lowest opportunity cost. D) they do not have an absolute advantage.