Many beaches have a lifeguard on duty during the summer but not during the winter. The most likely explanation for this is that:
a. the marginal cost of having a lifeguard on duty varies over the year and tends to be lower during the summer.
b. the marginal benefit of having a lifeguard on duty is higher during the summer when more people are at the beach.
c. people understand that if you go swimming at the beach during the winter, you do so at your own risk.
d. there is no danger of drowning at the beach during the winter.
Answer: b. the marginal benefit of having a lifeguard on duty is higher during the summer when more people are at the beach.
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Adam Smith argued that each person in a competitive market is led to promote the
A) efficient use of society's resources, because each person's intention is to make society better off. B) efficient use of society's resources, even though it is no person's intention to make society better off. C) inefficient use of society's resources, even though each person's intention is to make society better off. D) inefficient use of society's resources, because it is no person's intention to make society better off.
What agency processes most of the electronic payments?
a. the Treasury b. the Congress c. the FDIC d. the Fed
A decrease in business taxes will usually lead to ______ investment spending and a shifting of the aggregate demand curve to the ______.
a. less; left b. less; right c. more; left d. more; right
Dissaving occurs whenever
A. Current unemployment falls. B. Current consumption exceeds current income. C. Current supply exceeds current production. D. Current income falls.