In the standard restaurant, the marginal benefit to the eater would be pleasure of eating, but the marginal cost- spend money is greater than the marginal benefit to the eater. In the buffet-style restaurant, the marginal cost benefit, it just charges a single price, so the eater becomes a glutton. CHAPTER 2 Q 2 Answer: Economic growth is result of increases in supplies of resources; improvements in resource quality and technological advance. Use the government subsidy that is full employment and full production. We did not cost taxpayers anything. We full employment-we spend capital resources- government subsidy.
The pizza and robots attainable. Q 5 Answer: Economics is concerned with the problem of using or managing scarce resources to produce goods and services which fulfill the material wants of society. Both full employment and efficient use of available resources are essential to maximize want satisfaction. Unemployment that means available resources idle that can not be employed.
Economics can not the best use of scarce resources. So it is the subject problem of economics. Productive efficiency- producing all output combinations in the least costly way; allocative efficiency "C producing the specific output mix most desired by society. To producing CDs and PCs is achieving productive, but not allocative, efficiency. CHEATER 3 Q 6 Answer: Prices of related goods. A complementary good is one used together with another good.
Fish and potatoes are complementary good in the question. If the price of one good and the demand for the other good move in opposite directions. The potatoes is shortage, that reduce the fish demand because they are in the caf"| menu always together. Q 5 Answer: a. the supply of product B will be increase.
b. the demand is decreasing. c. demand is decreasing and the supplies is decreasing. d. the demand will be increase e.
the demand of production B will be decrease and the production A will be increase f. B will be increase Q 7 Answer: CHAPTER 4 Q 11 Answer: invisible hand is promote the public or social interest. CHAPTER 5 Q 14 Answer: Total expenditures is the most pensions and income security Total tax revenues is the personal income tax. The most of state expenditures is public welfare The most of state tax revenues is sales and excise taxes The most of local expenditures is education The most of local tax revenues is property taxes..