A marginal change is one that
a. does not influence incentives.
b. makes an outcome inefficient.
c. incrementally alters an existing plan.
d. is not important for public policy. - ️️c. incrementally alters an existing plan.
A point inside the production possibilities frontier is
...
MindTap 78 Exam 1 Questions Correctly Answers A marginal change is one that a. does not influence incentives. b. makes an outcome inefficient. c. incrementally alters an existing plan. d. is not important for public policy. - ✔ ✔ c. incrementally alters an exis ting plan. A point inside the production possibilities frontier is a. efficient but not feasible. b. feasible but not efficient. c. both efficient and feasible. d. neither efficient nor feasible. - ✔ ✔ b. feasible but not efficient. A rational person does not act unless a. the action makes money for the person. b. the action is ethical. c. the action produces marginal costs that exceed marginal benefits. d. the action produces marginal benefits that exceed marginal costs. e. None of the above is true. - ✔ ✔ d. the action produces marginal benefits that exceed marginal costs. A record company went out of business because too many of its customers downloaded its music illegally from the internet rather than purchasing the dig ital copy from the record company. This instance serves as an example of: a.market power. b.inadequate enforcement of property rights. c.inefficient trade. d.the invisible hand at work. - ✔ ✔ b.inadequate enforcement of property rights. A survey of pro fessional economists revealed that more than three -fourths of them agreed with a number of statements. Which of the following statement is NOT one of those propositions? a.The United States should eliminate agricultural subsidies. b.Local and state gover nments should eliminate subsidies to professional sports franchises. c.The United States should restrict employers from outsourcing work to foreign countries. d.Economic growth in developed countries like the United States leads to greater levels of well -being. - ✔ ✔ c.The United States should restrict employers from outsourcing work to foreign countries. According to the circular -flow diagram, if Molly is an employee who delivers packages for Deliver Dynamite, she participates in the markets for a.goods and services exchanging packages for wages, rent, and profit. b.goods and services exchanging labor for income. c.factors of production exchanging labor for income. d.factors of production exchanging packages for revenue. - ✔ ✔ c.factors of production exchanging labor for income. According to the principle of comparative advantage, a. countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners. b. countries should specialize in the production of goods for which they use fewer resources in production than their trading partners. c. countries should specialize in the production of goods that they enjoy consuming. d. countries with a comparative advantage in the production of every good need not specialize. - ✔ ✔ a. countries should specialize in the production of goods for which they have a lower opportunity cost of production than their trading partners. Adam Smith's "invisible hand" refers to a. the ability of government regulation to benefit consumers even if the consumers are unaware of the regulations.
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