It is the custom for paper mills located alongside the Layzee River to discharge waste products into the river. Operators of hydroelectric generating plants on the river find they must clean up the river's water before it flows through their equipment. Refer to the above information. If nothing is done to correct this situation:
A. the price of electricity will be lower than it should be.
B. there will be an overallocation of resources to the production of electricity.
C. there will be an overallocation of resources to the production of paper goods.
D. there will be an underallocation of resources to the production of paper goods.
Answer: C
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In the context of a roulette wheel, gambler's fallacy refers to the belief that:
A) outcomes of a gamble are mostly repetitive. B) winners in a gamble lose the next round. C) outcomes of a gamble tend to avoid repeats. D) winners in a gamble continue to win in streaks.
The most basic concept in economics is
A) wealth. B) income. C) scarcity. D) spending.
Which question is an illustration of a microeconomic question?
A. Is the purchasing power of the dollar higher or lower today than it was in 2005? B. Is the quantity of wine purchased in one year dependent upon the price of wine? C. Does government spending influence the total level of employment in the economy? D. Is capitalism superior to socialism?
A large enough production subsidy can turn an imported product into an exportable product.
Answer the following statement true (T) or false (F)