To achieve the optimal provision of public goods,
a. the market should be allowed to find its equilibrium without government interference
b. the government must limit the provision of these goods
c. the government must levy taxes on producers of these goods
d. the government must either provide the goods at prices different from those established on the market, or subsidize the production of those who provide thegoods
e. a tax must be imposed on consumers equal to the negative externality
D
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How does the economist's measure of profit differ from the accountant's measure?
A) Economists subtract total revenue from total cost; accountants do the opposite. B) Economists subtract total costs from total revenue; accountants do the opposite. C) Economists consider more sources of monetary revenue than accountants do. D) Economists include all opportunity costs, accountants don't. E) There is no difference between the two measures.
Describe ways that governments can promote faster economic growth
What will be an ideal response?
The manufacturer has put in place a price discrimination policy, where it charges its household customers more per unit than it charges its industrial users. The manufacturer wants to keep the retailer from arbitraging away the profits from the policy. The manufacturer should
a. Vertically integrate into the retail operations in the household market b. Vertically integrate into the retail operations in the industrial market c. Reward the household market retailers for not arbitraging d. All of the above
The risk of specializing (in the production of one good or service) is
A) lower in a barter economy than in a money economy. B) lower in a money economy than in a barter economy. C) the same in both a money and barter economy. D) greater the less likely you and the person you want to trade with have a double coincidence of wants. E) b and d