A point that lies inside the production possibilities curve reflects which of the following?
Ans: A failure to achieve full employment
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How does total taxes as a percentage of GDP in the United States compare to those of Western European countries, such as the United Kingdom, Germany, and Sweden?
a. U.S. taxation is substantially larger. b. U.S. taxation is about the same. c. U.S. taxation is slightly larger. d. U.S. taxation is smaller.
Suppose that there are only two fishermen, Zach and Jacob, who fish along a certain coast. They would each benefit if a lighthouse were built along the coast where they fish. The marginal cost of building each additional lighthouse is $150. The marginal benefit to Zach of each additional lighthouse is 90 - Q, and the marginal benefit to Jacob is 40 - Q, where Q equals the number of lighthouses. What is the efficient number of lighthouses?
What will be an ideal response?
Refer to the table at right. If the price is? $6, the perfectly competitive firm should produce
A. 107 units
B. 104 units
C. 106 units
D. 105 units
If the demand curve of a market is P = 14 - Q and the supply curve is P = 2 + 2Q, but a price ceiling of 6 is imposed, what will the shortage be?
What will be an ideal response?