In which of the following cases would the consumer surplus most likely be greatest for an umbrella?
a. at a ski resort experiencing a snowstorm during the slow part of the season
b. on a dry, cloudy day in a region that rarely receives measurable rainfall
c. in a major city on a rainy day that was predicted well in advance
d. when a downpour approaches a large, unprepared crowd in an open area
d. when a downpour approaches a large, unprepared crowd in an open area
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When economists say an activity is consistent with economic efficiency, they mean
a. a majority of citizens favor the activity. b. the benefits that result from the activity exceed the costs. c. the number of people who gain from the activity exceeds the number on whom costs are imposed. d. the costs that result from the activity exceed the benefits.
Modern terrorism overturns the central assumption of the Westphalian system that says only
a. democracies can provide a lasting form of power. b. weapons of mass destruction actually maintain peace. c. states have the military force to create serious security threats. d. economic inequality pits private citizens against one another.
Recall the Application about growth in China and India to answer the following question(s). From 1978 to 2004, China grew at a rate of 9.3 percent per year and India grew at a rate of 5.4 percent per year.According to this Application, based on the analysis of the sources of growth in China and India, and assuming that nothing changes, it can be concluded that:
A. India's long-term growth prospects are not as strong those for China. B. the growth rate in China should significantly slow down in the near future, but the growth rate in India will continue to rapidly increase in the near and distant future. C. there is convergence between the nations in Asia. D. China's reliance on technology for economic growth makes it less likely to keep pace with the growth rate in India.
In assessing the efficiency of government policy, economic analysis would focus on:
A. The size of government: big versus small B. Marginal benefits versus costs of government policy and action C. Presence or absence of the "invisible hand" D. Revenues and profitability of the government agencies