What does the "invisible hand" refers to?
How the decisions of self-interested households and firms lead to desirable market outcomes.
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The costs affecting decisions to supply are always
A) accounting costs. B) marginal costs. C) past costs. D) per unit costs. E) non-taxable costs.
An example of price discrimination is the price charged for:
a. an economics textbook at a campus bookstore. b. gasoline. c. theater tickets that offer lower prices for children. d. a postage stamp.
One way to achieve efficiency in a market with a negative externality is
a. to raise the market demand curve to the position of the marginal social cost curve b. to apply the Coase theorem c. to lower the marginal social cost curve to the position of the market supply curve d. to eliminate all side payments e. to raise the market supply curve to the position of the marginal social cost curve
If the government spends less than what it receives in taxes during a given interval, then the result is
A) a balanced budget. B) an entitlement. C) unrealized public debt. D) a government budget surplus.