One shortcoming of real GDP as an indicator of society's social well-being is that it fails to take into account the:
A. growth in productivity.
B. increase in the quantity of goods.
C. change in the price level.
D. non-market production.
Answer: D
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Lindahl pricing is not necessary for economic efficiency
a. True b. False
If the use of fossil fuels is harming our nation, according to the specificity rule the optimal policy to use to mitigate this harm is to
A. tax the consumption of fossil fuels. B. levy taxes on the extraction of coal and petroleum. C. subsidize research and development on alternate fuel sources. D. impose tariffs on the importation of fossil fuels.
If a perfectly competitive firm’s average total cost curve is above its demand schedule at every level of output, then the firm will earn _______ profits.
A) positive B) breakeven C) negative D) zero
"The U.S. government should not use my tax dollars to subsidize people on welfare"
A) is a positive economic statement because it simply describes one person's opinion. B) is a normative economic statement because it involves a value judgment about an economic policy. C) is a positive economic statement because it predicts that my tax dollars will go to welfare. D) is a normative economic statement because it is a scientific fact.