If public goods were marketed like private goods, then
A. People would avoid paying for these goods.
B. Public goods would be efficiently produced.
C. Market failure would not occur.
D. Society would be closer to achieving the optimal mix of output.
Answer: A
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Explain four reasons why it is difficult to use discretionary fiscal policy to eliminate a deflationary or inflationary ga
What will be an ideal response?
Popular criticism of determining who gets what by means of money prices increases in periods of inflation because
A) inflation hits poor people the hardest. B) people mistakenly assume an increase in money prices makes them worse off. C) the wealthy will eventually acquire everything if inflation continues long enough. D) there is no one who benefits from rising prices.
List the three major sources from which households derive their incomes
What will be an ideal response?
Which of the following best exemplifies a firm with a zero economic profit?
a. A hair salon that is making a small profit after expenses, but whose owners feel they could make more money by closing the business and getting different jobs. b. A bike shop that makes enough of a profit that its owners feel it is worth the time and money they put into the business. c. A cleaning service that is just getting started and does not yet have enough customers to cover the firm’s expenses. d. A popular restaurant with revenues that greatly exceed expenses and whose owners are planning to expand into a chain.