Self interest
A) reflects choices that are best for the individual who makes them.
B) reflects choices that are best for society as a whole.
C) occurs only when wants exceed available resources.
D) cannot be used to determine how goods are produced.
E) has nothing to do with determining what goods are produced.
A
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When a negative externality exists, _______________________ and thus _______________ intervention may be needed to achieve efficiency.
A. external costs are necessarily greater than private costs; government B. social costs equal private costs; no government C. social costs are less than private costs; government D. social costs are greater than private costs; government E. none of the above
Consider the following two cases. In the first, a U.S. firm purchases 18% of a foreign firm. In the second, a U.S. firm builds a new production facility in a foreign country
Both are ________, with the first referred to as ________ and the second as ________. A) foreign direct investment (FDI) outflows; greenfield; brownfield B) foreign direct investment (FDI) inflows; greenfield; brownfield C) foreign direct investment (FDI) outflows; brownfield; greenfield D) foreign direct investment (FDI) inflows; brownfield; greenfield E) foreign direct investment (FDI); inflows; outflows
Which of the following is not true of Lindahl prices for collective consumption goods?
a. Lindahl pricing might be useful in achieving political agreement on the proper amount of the public good to be produced. b. Lindahl prices are set so the marginal benefit they receive from the public good is equal to the marginal cost. c. Lindahl prices are difficult to calculate in practice. d. Lindahl prices are necessary for economic efficiency.
fConsider a course with 40 students....
Consider a course with 40 students, some of whom are confused after the professor explains a concept. The professor doesn't know whether students are confused, but will clarify the concept if one student asks a question. A student who asks a
questionlong dash—and
reveals his or her
confusionlong dash—loses
88
utils. When the professor clarifies the concept in response to a question, each confused student gets a benefit of
22
utilsutils.