Economic efficiency requires that costs associated with the expansion and utilization of capital be balanced against the
a. future increases in output derived from improved tools and production methods.
b. reduction in future employment due to automation.
c. indirect costs of capital goods.
d. need to maintain a reserve army of the unemployed.
A
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Attractive industries have all the following, except
a. High supplier power b. Low buyer power c. High entry barriers d. Low rivalry
Which of the following is not a program that is managed using fiscal policy?
A) Unemployment benefits B) Social Security C) Mortgage rates D) Corporate taxes
Government regulators can achieve efficiency for a natural monopoly by setting a price ceiling equal to the intersection of the demand curve and the:
A. marginal revenue curve. B. average cost curve. C. marginal cost curve. D. average fixed cost curve.
One key assumption of the theory of public choice is that individuals
A. are always in favor of the collective well-being of the public instead their own well-being. B. act differently between the public sector and the market sector. C. act within the political process to maximize their individual well-being. D. are always concerned about the well-being of other individuals in society.