Whether an externality is positive or negative, it is always
A) evaluated by the Supreme Court of the United States.
B) evaluated by the government.
C) evaluated by the impact on the third party.
D) judged by the profitability of the firm producing the product.
Answer: C
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Points on the production possibilities frontier have the property that they
A) are inherently unattainable. B) show the maximum amount of leisure that can be consumed for given amounts of goods consumed. C) show the maximum amount of goods that can be consumed for given amounts of government spending. D) show the maximum amount of leisure that can be consumed for given amounts of hours worked.
Individuals who specialize in activities that lower transaction costs are
A) consumers. B) producers. C) bureaucrats. D) middlemen.
If the citizens of a country were to work harder and take less leisure time, it would
a. shift the production possibilities curve outward. b. cause an economy to operate inside its production possibilities curve. c. shift the production possibilities curve inward. d. cause an economy to move from one point on the production possibilities curve to another point on the curve.
One reason mainstream economists see the world differently than do noneconomists is that economists tend to stress the importance:
A. that incentives have on choices. B. of fairness. C. of the limited competence of individuals to know what is good for themselves. D. of power and how it leads to exploitation.