The total amount of consumption of a society can be increased if
a. firms allow each worker to perform multiple tasks.
b. resources are allocated by a central planning group.
c. individuals engage in specialization and voluntary trade.
d. barter exchange is used in place of money.
c
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Many motorcycle riders want to feel the wind of the open road without the constriction of helmets. But riders without helmets are more likely to suffer severe injuries that run up hospital bills at public expense. Which of the following is most likely to reduce the costs imposed on hospitals by helmetless riders?
A. Fining riders caught not wearing helmets B. Taxing motorcycle helmet sales C. Reimbursing injured rider’s hospital bills D. Subsidizing hospitals
Refer to the graph shown. The economy is in both a short-run and a long-run equilibrium at:
A. point A. B. point B. C. point C. D. no point in the graph.