Goods that have spillover costs affect our collective well-being and therefore can be overproduced because
A. The government is concerned about broad economic welfare.
B. The government has failed to enforce contract provisions.
C. Most businesses are more concerned about profits than how the environment is affected.
D. The government has failed to establish rules for contracts.
Answer: C
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The incidence of a tax:
A. falls entirely on consumers if demand is perfectly elastic. B. falls entirely on consumers if demand is perfectly inelastic. C. is shared by suppliers and consumers if demand is perfectly elastic. D. falls entirely on suppliers if demand is perfectly inelastic.
Big Bear Enterprises, which competes in a perfectly competitive market, is producing so that the point chosen along the production possibility frontier is socially preferred. Big Bear Enterprises has achieved which of the following?
a. Allocative efficiency b. Productive efficiency c. Economies of scale d. Long-run equilibrium
Which of the following is most important for the achievement of higher income levels and living standards?
What will be an ideal response?
One organization in the United States today that is exempt from antitrust laws is
A. the steel industry. B. the automobile industry. C. professional baseball. D. the oil industry.