The reason individual homeowners usually do not hire a private contractor to fill the potholes on their street is because
a. there are positive externalities associated with the potholes
b. the value to the neighborhood exceeds the cost of repair
c. it costs them more than the benefits they derive
d. they do not trust the government
e. there are negative externalities associated with the repair
C
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The concept of government as redistributor is
A. approved by many but questioned by many as well. B. generally rejected as against “the American way.” C. largely approved by a vast majority of Americans. D. unnecessary in the United States because income disparities are small. E. a conservative idea that many liberals reject.
Suppose Ann can produce 8 units of a material good (M) or 4 units of a spiritual good (S) in a day, while Ben can produce only 3 Ms or 3 Ss in a day. Both Ben and Ann can potentially produce a larger combination of M and S if
A) Ann produces both M and S and Ben produces neither. B) Ann specializes in M and Ben specializes in S and neither of them trade. C) Ann specializes in S and Ben specializes in M and they exchange with one another. D) Ann specializes in M and Ben specializes in S and they exchange with one another.
If farm price supports gave farmers 80 percent parity in 1950 and 60 percent parity in 1975, then we know that
a. the ratio of farm income to nonfarm income was higher in 1975 than in 1950 b. the ratio of farm income to nonfarm income was higher in 1950 than in 1975 c. the ratio of farm prices to nonfarm prices was higher in 1975 than in 1950 d. the ratio of farm prices to nonfarm prices was higher in 1950 than in 1975 e. farmers were better off in 1975 than in 1950
Product differentiation is _____ based on real physical differences among products.
A. always B. sometimes C. never