Money prices are an extremely effective device for promoting social cooperation because
A) most people want money more than they want anything else.
B) people are basically selfish.
C) scarcity can be eliminated through appropriate changes in money prices.
D) they don't change rapidly when circumstances change.
E) they help to clarify the options available to people.
E
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If economies of scale allow one cable TV firm to supply the entire market at the lowest possible cost, then this company is
A) a natural monopoly. B) not a monopoly. C) a monopoly, but not a natural monopoly. D) a legal monopoly.
The short-run aggregate supply curve is horizontal if
A) resources were fully utilized. B) there are unutilized resources in the economy. C) resources are perfectly adaptable between production processes. D) there are high inflation rates.
Federal taxes as a share of GDP have _______________.
a. increased dramatically b. decreased dramatically c. remained the same within 3% d. remained flat
Suppose that you can schedule a worker for up to 10 hours per day. The total benefit and total cost functions are B(H) = 1200 × ?H and C(H) = 200H. The corresponding formulas for marginal benefit and marginal cost are MB(H) = 600/?H and MC(H) = 200. How many hours should you schedule the worker?
A. 9 hours B. 8 hours C. 4 hours D. 0 hours