If people are free, they only engage in economic transactions where they expect to benefit.
True
When people are free to choose, they would like to increase their expected payoff by engaging in economic transactions that maximizes their net benefits.
If people are free, they only engage in economic transactions where they expect to benefit.
As the tax wedge associated with a given economic activity gets smaller, we would expect A) the distortions caused by taxes on that activity to be greater. B) people will spend more on that economic activity. C) no change in the practice of that activity until the tax wedge ultimately disappears. D) more of that economic activity to occur. E) people to engage in less of that particular activity.
10. A company can achieve a pure benefit or economic benefit only when: a) The marginal cost is equal to the marginal revenue b) The marginal cost is equal to the price. c) The average total cost is less than the average income. d) Net income is growing e) None of the above. 11. When the company is manufacturing and selling a volume of production such that the average total cost is equal to its average income, that company: a)...
good with an external benefit (positive externality) is a market ________ because__________.a.bonus // many people are benefiting other than simply the buyer of the good.b.failure // too many people are buying the good for economic efficiencyc.failure // too few people are buying the good for economic efficiencyd.bonus // free riders increase the value of the good
If people attempt to free ride fee-based public transportation, how can one implement the benefit-based principle?
What are the basic assumptions in economic studies? A. People are identical. B. There is no gender difference in consumption behavior. C. People respond to economic incentives. D. People are rational. E. People make decisions based on the analysis of marginal benefit and marginal cost. F. People make the same income.
Is it true that we live our economic lives through our transactions with other people? Economics Accounting and Finance Class
7. How can cost benefit analysis help explain why people are more likely to overeat at all you can eat buffets than at restaurants where we pay for extra portions? a. At all-you-can-eat buffets, the food always tastes better, so people eat more. b. The marginal cost of additional food is lower at all-you-can-eat buffets since they don't charge for a second helping of food. c. Marginal benefit is always less than marginal cost for food at all-you-can-eat buffet d....
A major economic benefit of fixed exchange rates compared to floating rates is that a. the prices of goods and services remains the same across all participating countries. b. they help to establish convergence in per capita income across participation countries. c. they help countries conduct independent monetary policies. d. they simplify economic calculations and provide a more predictable basis for international transactions.
Think about a country where most economic production results in a terrible smell that makes people sick. What would be the trade-off if the bad result (a terrible smell) were reduced? Choose one: A. more of the activity that makes people sick B. lower incomes C. higher incomes D. less of the activity that makes people sick
marginal cost environmental justice free market environmentalism holdout effect free-rider effect marginal benefit equilibrium price positive externality economic efficiency negative externality welfare analysis Pigovian (pollution) tax We were unable to transcribe this image