If an activity is worth pursuing at all, then the only information the decision maker needs to make a choice is
a. total benefits.
b. marginal benefits and marginal costs.
c. variable costs.
d. fixed costs.
b. marginal benefits and marginal costs.
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What does it mean to internalize an externality?
What will be an ideal response?
Assume a consumer has a horizontal demand curve for a product. His consumer surplus from buying the product
A) is maximized. B) can't be calculated. C) equals zero. D) Need more information.
Public choice theory assumes that voters, politicians, and other political participants are largely motivated by: a. personal self-interest
b. altruism. c. a desire to promote the general welfare. d. a desire to promote allocative economic efficiency.
The Fed directly sets:
A. the prime interest rate but not the federal funds rate. B. both the federal funds rate and the prime interest rate. C. neither the federal funds rate nor the prime interest rate. D. the discount rate and the prime interest rate.