Economic theory indicates that the behavior of
a. government employees differs from the behavior of employees in the private sector because government employees generally disregard their own personal self-interest when making decisions.
b. elected public officials differs from the behavior of all other individuals in society because they are not influenced by private interests.
c. individuals when they make decisions about who to vote for is very different from the behavior of these same individuals when they make other types of choices.
d. voters, government employees, and public officials is best understood by applying the same basic principle we use to predict the behavior of people in the private sector--that incentives matter.
D
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A positive externality exists when
A. a person's or group's actions cause a benefit that is felt by others. B. a person's or group's actions cause a cost that is felt by others. C. market output is less than socially optimal output. D. a and c E. b and c
For a firm in a perfectly competitive product market, the marginal resource cost curve is horizontal if the resource market is also competitive
a. True b. False
Given the following data, what is the distance from the origin to the point where the total expenditures (TE) curve cuts the vertical axis? C = $400 + 0.75Yd I = $120 G = $270
A) $670 B) $790.75 C) $790 D) $400 E) ?$390
If an economy experiences constant opportunity costs with respect to two goods, then the production possibilities curve between the two goods will be?
A. A straight, downward-sloping line. B. Bowed outward or concave from below. C. Bowed inward or convex from below. D. Bowed outward until the two goods are equal, and then bowed inward.