Government intervention is always preferable to doing nothing when reducing the social inefficiencies of monopoly
a. True
b. False
Indicate whether the statement is true or false
False
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If the marginal benefit of the next slice of pizza exceeds the marginal cost, you will
A) eat the slice of pizza. B) not eat the slice of pizza. C) be unable to choose between eating or not eating. D) eat half the slice. E) More information is needed about how much the marginal benefit exceeds the marginal cost to determine if you will or will not eat the slice.
A firm has successfully adopted a positive technological change when
A) it can produce more output using the same inputs. B) it sees an increase in worker productivity. C) it produces less pollution in its production process. D) it can pay its workers less yet increase its output.
When measuring GDP, economists count only the values of final goods and services because
a. the final value is taxable b. adding the values of intermediate products is too difficult a task c. the value of all intermediate products is automatically included in the value of those final goods d. intermediate products are overpriced e. the final cost is the selling price, which is what economists want to know
Recall the Application about how society will cope with increased demands for entitlement programs to answer the following question(s). This Application addresses the impact of increasing life expectancy and aging populations on the costs of government entitlement programs such as Social Security, Medicare and Medicaid, and examines several possible solutions to the potential problem.According to this Application, one strategy proposed to deal with the rising expenses of government entitlement programs is for the government to save and invest now so as to reduce the burden on future generations. This strategy would:
A. increase GDP, and entitlement programs would increase along with GDP. B. increase GDP and entitlement programs would decrease. C. increase GDP and eliminate entitlement programs. D. not change GDP, but shrink entitlement programs.