Chapter 1: Q3. (page 17)
Water is necessary for life. Is the marginal benefit of a glass of water large or small?
Short Answer
A glass of water has a small marginal benefit.
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Chapter 1: Q3. (page 17)
Water is necessary for life. Is the marginal benefit of a glass of water large or small?
A glass of water has a small marginal benefit.
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Discuss each one of the following from the standpoints of equality and efficiency.
The main reason that some nations have higher average living standards than others is that
A. the richer nations have exploited the poorer ones.
B. the central banks of some nations have created more money.
C. some nations have stronger laws protecting worker rights.
D. some nations have higher levels of productivity.
How are inflation and unemployment related in the short run?
The chapter defines private enterprise as a characteristic of market-oriented economies. What would public enterprise be?
The company that you manage has invested \(5 million in developing a new product, but the development is not quite finished. At a recent meeting, your salespeople report that the introduction of competing products has reduced the expected sales of your new product to \)3 million. If it would cost $1 million to finish development and make the product, should you go ahead and do so? What is the most that you should pay to complete development?
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