Industries in which firms are suffering losses are likely to ________ in the long run.
A. expand
B. contract
C. neither expand nor contract, as firms must earn an economic profit to stay in business
D. expand or contract depending on the normal rate of return
Answer: B
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There is no good reason for K-12 education to be free.
Answer the following statement true (T) or false (F)
A prisoner's dilemma can be described as a situation in which
a. a decision maker is uncertain about the potential punishment for something done in the past b. an individual decision maker finds it in his best interest to pursue a course of action that can lead to a less than desirable outcome for the group c. producers act so as to avoid maximizing profits because of government retaliation d. individual firms seeks to maximize their own profits with no regard for the group e. the summation of individual demand curves creates an inelastic demand curve facing the industry
Public provision of education might
A. cause property values to fall. B. crowd out private provision. C. decrease local taxes. D. none of these answer options are correct.
Assume that oranges and peaches can both be grown on the same type of land, a decrease in the price of peaches, other things being equal, will cause a(n):
A. upward movement along the supply curve for oranges. B. downward movement along the supply curve for oranges. C. rightward shift of the supply curve for oranges. D. leftward shift of the supply curve for oranges.