"Economists assume people are selfish." Do you agree with this statement or not? Explain
What will be an ideal response?
Economists do not assume people are selfish, although clearly some people are. Self-interest does not necessarily mean selfishness. People have many goals, some of which may be self-centered and some of which may be more altruistic. Charity is consistent with self-interested behavior.
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Use the following table showing maximum-output alternatives for Brazil and Poland to answer the next question.CountryWineMachinesBrazil3010Poland1010If the two nations open up trade with each other, then
A. Brazil will not gain from specializing and trading, but Poland will gain. B. Brazil will specialize in producing machines and import wine. C. Poland will specialize in producing machines and import wine. D. Poland will export wine.
The amount by which government purchases and transfers exceed tax revenues is known as the
A) primary surplus. B) primary deficit. C) primary current deficit. D) government debt.
Exhibit 7-15 Long-run average cost
In Exhibit 7-15, diseconomies of scale are shown in the range of:
A. 0 to 500 units per week. B. 500 to 1,000 units per week. C. 1,000 to 2,000 units per week. D. zero per week.
Diseconomies of scale occur
A. only in the long run. B. because of fixed costs. C. only in the short run. D. none of these.