The assumption of a closed economy
a. applies to the world economy.
b. applies to most national economies.
c. requires us to assume that the government's budget is always balanced.
d. All of the above are correct.
a
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A hypothesis states that religious teachings, family ties, and/or social norms are the root cause of economic prosperity. According to this hypothesis:
A) culture is a proximate cause of prosperity. B) geography is a fundamental cause of prosperity. C) institutions is a fundamental cause of prosperity. D) culture is a fundamental cause of prosperity.
The table above shows the marginal benefit that arises from providing police protection in an economy of two people, Paul and Art. Police protection is a public good
a) Construct a table of the economy's marginal social benefit from providing police protection. b) What is the economy's marginal social benefit from having 3 police cars on duty?
According to Lerner, if we do not know people's utility functions, we
a. cannot engage in redistributing incomes among people b. can still assume that the marginal utility of a dollar for the rich is higher than for the poor c. make less of a mistake by assuming that they are equal d. should let the market determine the distribution of income e. should assume they are unequal because it is the most likely
Refer to the accompanying table. The law of diminishing marginal returns becomes evident after ________ units of output are produced. Output Per DayNumber of Employees Per Day00331662994132716511
A. 99 B. 33 C. 132 D. 66