Governments, not markets, have the best record of allocating investment resources into those projects with the highest expected rate of return
Indicate whether the statement is true or false
False
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Lisa consumes only pizzas (P) and burritos (B). Her utility function is U = P0.5 B0.5. The price of per pizza is $10 and the price per burrito is $5. In equilibrium, Lisa consumes 4 pizzas
Using Lisa's utility function, calculate how many burritos she consumes.
One of the limitations of the national income accounting system is: a. valuing all output at its market price regardless of its contribution to society's economic welfare. b. placing a market value on all negative externalities
c. accurately measuring the value of leisure time. d. double counting food produced on a farm for family consumption. e. ignoring government production of goods and services.
Briefly describe the influence of majority rule on the individual consumption–payment link.
What will be an ideal response?
People enjoy outdoor holiday lighting displays and would be willing to pay to see these displays but can't be made to pay. Because those who put up lights are unable to charge others to view them, they don't put up as many lights as people would
like. This is an example of a: A. negative externality. B. supply-side market failure. C. demand-side market failure. D. government failure.