When the First Fundamental Theorem of Welfare Economics doesn't hold, there is a market failure.
A. True
B. False
C. Uncertain
A. True
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Why does growth occur in two-sector growth models?
What will be an ideal response?
The statement "balancing the budget on the backs of the poor" refers to
A. Transfer payment cuts in order to reduce government expenditures. B. Government spending cuts on public parks in order to reduce government expenditures. C. Tax increases on the poor in order to increase government revenues. D. Government spending increases in order to increase aggregate expenditures.
Suppose there is a family in which all the boys are expected to become farmers when they are adults, just as their fathers and grandfathers did. In which kind of economy do they participate?
a) false economy b) command economy c) traditional economy d) centrally planned economy
If a firm is producing where MR < MC
A. the firm is already maximizing profits because revenue is being decreased by more than costs. B. the revenue gained by producing one more unit of output equals the cost incurred by doing so. C. the revenue gained by producing one more unit of output is less than the cost incurred by doing so. D. the revenue gained by producing one more unit of output exceeds the cost incurred by doing so.