The allocative function of price cannot operate unless there is:
A. either free entry or free exit.
B. neither free entry no free exit.
C. both free entry and free exit.
D. a significant barrier to entry.
Answer: C
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In 2011, the top 25 percent of income earners in the U.S. (by the size of their taxable incomes) paid about __________ percent of the total federal income taxes
A) 25 B) 30 C) 54 D) 65 E) 86
One of the main differences between production processes among different parts of the world has to do with the quality of capital. Many development economists point out the fact that high-income countries usually have access to more and better capital than less-developed counties. What would be the effect of this difference in terms of isoquants used by high-income countries versus the isoquants used by low-income countries? Use an isoquant map in order to illustrate your answer.
What will be an ideal response?
cost-shifting. Suppose your assignment is to use the standard time trade-off approach to measure quality of life and are given the following information. An individual is faced with living the remaining 10 years of her life suffering from severe osteoporosis. She reveals that she would be willing to give up four of those years to live the remaining six in perfect health. What is the utility of one year in the chronic health state relative to perfect health?
a. 0.6 b. 4 c. 0.4 d. 6 e. 40
Which of the following is generally considered a desirable outcome of government intervention when expanding the economy?
A. A higher price level. B. Higher unemployment rates. C. More jobs. D. Greater deficits.