True or False: Majority voting on whether a public good should be produced could lead to a result where a public good whose cost are bigger than the benefits would end up getting approved by the voters. Correct Answer-True
Understand diminishing marginal utility Correct Answer-The benefit/value ...
Econ 202 Carlisle Exam 1 (Chapters 1-5) Questions
with Correct Answers
True or False: Majority voting on whether a public good should be
produced could lead to a result where a public good whose cost are
bigger than the benefits would end up getting approved by the voters.
Correct Answer-True
Understand diminishing marginal utility Correct Answer-The
benefit/value of a good or service decreases with each additional unit
bought
Understand diminishing returns Correct Answer-The principle that as
successive increments of a variable resource are added to a fixed
resource, the marginal product of the variable resource will eventually
decrease
The law of demand states that, other things equal, ..... Correct Answer-
As price increases, the demand decreases
Understand production possibilities curves Correct Answer-
A.Downward slope/curve
I.Reflects the law of increasing opportunity costs
B.The opportunity cost of each additional unit is greater than the
opportunity cost of the preceding one -different combinations of two
goods or services that can be produced in a full employment, full
production economy
, Definition of monetary policy to recognize an example of it Correct
Answer-A central bank's changing of the money supply to influence
interest rates and assist the economy in achieving price level stability
full employment, and economic growth
The government of Southland wants to improve resource allocation in
the country. Which of the following actions by the Southland
government is most likely to accomplish this?
a. weakening enforcement of laws and contracts
b.coercing all firms to innovate and invest
c.taxing polluters and subsidizing firms that are creating significant
positive externalities
d.promising to cover every risk of loss for private firms Correct Answer-
C. .taxing polluters and subsidizing firms that are creating significant
positive externalities
How do self-interest and the invisible hand work together in a
competitive market economy. Read and understand generally. Correct
Answer--unity of private and social interest -Efficiency -incentives -
freedom
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