The following accompanying table shows the relationship between the speed of a computer's CPU and its benefits and costs. Assume that all other features of the computer are the same (that is, CPU speed is the only source of variation), and only the CPU speeds listed below are available for purchase. CPU GHzTotal BenefitMarginal BenefitTotal CostMarginal Costs2.0$1,000 $900 2.5$1,400 $1003.0 $300$1,200 3.5$1,900 $1,500 4.0$2,000 $400 Application of the Cost-Benefit Principle would lead one to purchase a ________ computer.
A. 3.0GHz
B. 4.0GHz
C. 2.0GHz
D. 2.5GHz
Answer: A
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Refer to Scenario 6.1. Suppose the friends are forced by government to combine their businesses and share what they make. With this revision to the scenario, the Nash equilibrium occurs where
A) both Tasha and Gloria work extremely hard. B) both Tasha and Gloria work somewhat hard. C) Both A and B represent Nash equilibria. D) There is not a Nash equilibrium in this scenario.
Refer to the above figure. From the standpoint of society, the optimal output is
A) Q1 B) Q2 C) Q3 D) Q4
Who once said that taxes are the price we pay for a civilized society?
a. Milton Friedman b. Theodore Roosevelt c. Arthur Laffer d. Oliver Wendell Holmes, Jr.
It is correct to state that a society which is on its production possibilities curve is
A. technologically inefficient. B. fully utilizing its productive resources. C. consuming too much output. D. underutilizing is resources.