Imagine an ideal scenario where world peace prevails and all nations are led by peace-minded leaders. In such a world, the:
A. MB for defense goods would shift left
B. MB for defense goods would shift right
C. MC for defense goods would shift left
D. MC for defense goods would shift right
Answer: A
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Successful entrepreneurs
A) do not have to follow government regulations. B) provide new products and job opportunities for others. C) have high consumption rates and relatively low investment rates. D) are not influenced by government tax policies.
The straight-line budget constraint indicated ____________ opportunity cost?
a. decreasing b. average c. increasing d. constant
Consider the following: there are two countries, A and B. Each country has the same resources, and produces the same goods. The residents of country A use money; the residents of country B rely on bartering of goods. Will each country produce the same quantity of output? Explain.
What will be an ideal response?
If the social benefit is greater than the private benefit in a particular market, then the socially optimal equilibrium will be at a quantity:
A. greater than the private level. B. equal to the private level. C. greater than or less than the private level, depending on the size of the external costs. D. less than the private level.