Small differences in growth rates can create large differences in income levels because of:
A. Say's Law.
B. specialization.
C. compounding.
D. the division of labor.
Answer: C
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The stabilization policies of government are most likely to promote
A) high employment. B) price stability. C) reduced aggregate fluctuations. D) the interests of those who plan and execute them. E) the interests of the majority of voters.
The above figure shows the marginal social benefit, marginal private cost and marginal social cost of producing steel. If the market is competitive, what government policy might move the market closer to efficiency?
A) The government could subsidize the production of steel. B) The government could tax the production of steel. C) The government could issue vouchers to steel consumers. D) None of the above answers is correct.
College education tends to result in a negative externality because the recipient does not receive the full benefit of the education
Indicate whether the statement is true or false
If at the current level of product-specific service, consumers' value at $15 and the cost of retailers to provide the services is $10, which of the following is true?
A) the profit-maximizing level of profit-maximizing services is less than the current level B) the profit-maximizing amount of product-specific services is being offered. C) the profit-maximizing level of profit-maximizing services is greater than the current level D) the profit-maximizing level of profit-maximizing services is exactly one -half of the current level