hey bot answer this question
Why does the government oversee the provision of public goods?
a
Public goods and services require resources in production that are scarce; therefore, the government must ensure that production is limited.
b
Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods.
c
Public goods are goods and services that tend to result in negative externalities; therefore, the government must oversee that the provision of these goods and services is limited.
d
Public goods are goods and services that are non-excludable and rivalrous. The government must oversee the fair distribution of these goods; otherwise, they would be distributed on a first-come, first-serve basis.
b) Public goods are goods and services that are non-excludable and non-rivalrous; therefore, it is not profitable or in the best interest of private businesses to provide these goods.
Use the table to answer the question.
# of Workers Output Fixed Cost ($) Variable Cost ($) Total Revenue ($)
0 0 100 - -
10 300 100 90 150
20 800 100 290 400
30 1,200 100 490 600
40 1,500 100 670 750
At what output level should a perfectly competitive firm choose to produce at?
a
The firm should choose to produce 300 units of output.
b
The firm should choose to produce 1,200 units of output.
c
The firm should choose to produce 800 units of output.
d
The firm should choose to produce 1,500 units of output.
c) The firm should choose to produce 800 units of output.
Explanation: In a perfectly competitive market, firms should produce at a level where marginal cost (MC) equals marginal revenue (MR). Looking at the variable cost column, we can calculate the MC of producing additional units:
MC(10) = (90-0)/10 = 9
MC(20) = (290-90)/10 = 20
MC(30) = (490-290)/10 = 20
MC(40) = (670-490)/10 = 18
From this, we can see that the MC is lowest at an output level of 800, where it is 18. At this output level, the MR is also equal to 18 (found by taking the change in total revenue at an output of 20 and an output of 10, which is 60-150=-90, and dividing by the change in output, which is 20-10=10). Therefore, a perfectly competitive firm should choose to produce 800 units of output.
Match the economic system to its definition.
Column A
1.
market economy:
market economy
2.
traditional economy:
traditional economy
3.
command economy:
command economy
4.
mixed economy:
mixed economy
Column B
a.an economy where price signals, resulting from supply and demand forces within the economy, determine the allocation of resources and the production of goods and services
b.an economy that takes elements from both a market economy and a command economy to allocate resources and determine the production of goods and services
c.an economy where a central government determines both the allocation of resources and the production of goods and services
d.an economy where culture determines both the allocation of resources and the production of goods and services
1. Market economy: an economy where price signals, resulting from supply and demand forces within the economy, determine the allocation of resources and the production of goods and services.
2. Traditional economy: an economy where culture determines both the allocation of resources and the production of goods and services.
3. Command economy: an economy where a central government determines both the allocation of resources and the production of goods and services.
4. Mixed economy: an economy that takes elements from both a market economy and a command economy to allocate resources and determine the production of goods and services.
An investor purchased 50 shares of stock in a company in 2015. At the time the investor purchased the stock, the value of the stock was priced at
$5 per share. The investor sold all 50 shares of stock in 2019. The value of the stock at the time of sale was $
$6.50 per share. What is the capital gain the investor earned on this investment?
a
$250
b
$50
c
$325
d
$75
c) $325
Explanation: To calculate the capital gain, we need to find the difference between the selling price and the purchase price, and then multiple by the number of shares:
Capital gain = (selling price - purchase price) x number of shares
Capital gain = ($6.50 - $5.00) x 50 = $1.50 x 50 = $75
Therefore, the investor earned a capital gain of $75 on this investment.
A business produces picnic tables and benches. The business currently produces 20 tables and 10 benches per week. An increase in demand for benches has the business considering a change to 15 tables and 15 benches per week. What is the trade-off the business must make?
a
the difference between the profit of 10 benches and the profit of 15 benches
b
the difference between the profit of 20 tables and the profit of 15 tables
c
the choice between the cost of the new production schedule and the cost of the old production schedule
d
the choice between the net profit of the new production schedule and the net profit of the old production schedule
b) The difference between the profit of 20 tables and the profit of 15 tables.
Explanation: The trade-off that the business is facing is between producing more tables and producing more benches. By switching to producing 15 tables and 15 benches per week, the business is decreasing its production of tables by 5, and increasing its production of benches by 5. Therefore, the trade-off that the business must make is between the profit earned from producing an extra 5 tables, and the profit earned from producing an extra 5 benches.
Option a is incorrect because it assumes that the business is making a trade-off between the profit of 10 benches and the profit of 15 benches, but the business is actually making a trade-off between producing more tables or more benches.
Option c is incorrect because the choice between the cost of the old and new production schedules is not a trade-off, but rather a decision that would be made based on other factors including efficiency and profitability.
Option d is incorrect because it assumes that the business is making a trade-off between the net profit of the old and new production schedules, but the business is actually making a trade-off between the production of tables and benches.
Question 17 (1 point)
The United Kingdom currently has a trade deficit with New Zealand. If the U.K. pound sterling appreciates relative to the New Zealand dollar, which of the following correctly explains the effect on the trade deficit?
a
The trade deficit will decrease, since an appreciating pound means more goods will be imported from New Zealand.
b
The trade deficit will increase, since an appreciating pound means more goods will be imported from New Zealand.
c
The trade deficit will decrease, since an appreciating pound means fewer goods will be imported from New Zealand.
d
The trade deficit will increase, since an appreciating pound means fewer goods will be imported from New Zealand.