The old saying, “There are no free lunches,” can best be used to explain that ______.
a. free-riders will use goods without paying for them
b. there are trade-offs for every government program
c. transaction costs prevent the completion of most deals
d. private firms are more efficient than the government
b. there are trade-offs for every government program
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The table above shows a total product schedule. Suppose that labor costs $20 per worker and fixed costs are $60. The average variable cost of producing 80 units equals ________ per unit
A) $0.75 B) $1.00 C) $1.75 D) $20 E) $0.25
Examples of comparative advantage show how trade between two countries can make each better off. Compared to their pre-trade positions, trade makes both countries better off because in each country
A) total employment is greater. B) total welfare is greater. C) total consumption of goods is greater. D) wages are higher.
In macroeconomic analysis, the representative consumer
A) denotes the consumer with the average amount of income. B) plays the role of a stand-in for all consumers in the economy. C) is the consumer who bargains with firms for all workers in the economy. D) is always a misleading fiction.
For a government to be efficient, a project should be funded up to
A. MB = 0. B. MB = ~ C. MC = 0. D. MC = ? . E. MB = MC.