According to classical economists,
A) spending equals saving.
B) saving equals income.
C) income equals wealth.
D) none of the above
D
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Which of the following is an implicit cost? i. wages paid to workers ii. the normal profit iii. the electric bill
A) i only B) ii only C) i and ii D) ii and iii E) Neither i, ii, nor iii
The long-run social benefits of infant industry protection are more likely to be realized if
(a) investors believe that tariff barriers are permanent. (b) investors believe that tariff barriers are transitory. (c) tariff barriers increase over time. (d) tariff barriers are replaced with quotas over time.
The demand for factor inputs:
A. depends upon the markets for the goods that they are used to produce. B. is referred to as imputed demand. C. is independent of how much they contribute to the value of the end product. D. is generally constant across most factor markets.
In many countries, the government chooses to "internalize" the monopoly by owning monopoly providers of goods and services. (In some cases these firms are "nationalized," and the government actually buys or confiscates firms that operate in monopoly
markets). What would be the advantages and disadvantages of such an approach to ensure that the "best interest of society" is promoted in these markets? Explain your answer.