Which of the following is not an example of an efficiency-equity trade-off faced by economic agents?
A) Some U.S. colleges cut back on merit scholarships since these programs siphon money from need-based programs, thus harming lower-income students with greater financial need.
B) According to an article by in the American Journal of Public Health by Edward Kaplan and Michael Merson of Yale University School of Medicine, the federal government's current method of allocating HIV-prevention resources is not cost-effective. Instead of allocating resources to states in proportion to reported AIDS cases, resources should flow first to those activities that prevent more infections per dollar and then to less and less effective combinations of programs and populations until funds are exhausted, even if it means that some populations would be left without any prevention services.
C) Concerned about the falling birth rate, the French government has pledged more money for families with three children, in an effort to encourage working women to have more babies.
D) The growing demand for corn by ethanol producers has led to a surge in the price of tortillas, a staple in the Mexican diet. To quell public outcry over rising tortilla prices, the Mexican government released government corn stocks at prices well below the market, and pressured states to impose price ceilings on tortillas.
C
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The mixed economy is the dominant economic system in the world because
a. custom and religion have no influence on economic decisions in these systems b. pure capitalist economies have placed more control in the hands of individuals in recent years c. there is public (i.e., governmental) ownership of resources but regulation of government by individuals reduces some of the flaws of pure capitalism d. there is private ownership of property but government regulation of individuals reduces some of the flaws of pure capitalism e. governments in pure command economies have increased their control over decision-making in recent years
What is the primary focus of the neoclassical theory?
a. The intermediate run b. The short run c. The long run d. Both the short and the long run
The total value of goods and services produced within a nation's borders, measured in constant prices refers to:
A. Nominal GDP. B. Real inflation. C. Per capita GDP. D. Real GDP.
Online music stores such as Apple's iTunes provide an alternative to buying CDs. The introduction of online music stores has shifted:
A. the demand curve of CDs to the right. B. the supply curve of CDs to the left. C. the demand curve of CDs to the left. D. the supply curve of CDs to the right.