In the case of a private good, which of the following forms of economic organization will result in the strongest incentive for consumers and producers to economize?
a. The good is produced privately and taxes are used to provide it to consumers free of charge.
b. The good is produced privately and consumers purchase it with their own money.
c. The good is produced by government enterprises and the cost of its production is covered by taxes.
d. The good is produced by government enterprises and consumers purchase it with their own money.
B
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Hurricane Katrina destroyed oil and natural gas refining capacity in the Gulf of Mexico. This subsequently drove up natural gas, gasoline, and heating oil prices. As a result, this should
A) shift the short-run aggregate supply curve to the right. B) shift the short-run aggregate supply curve to the left. C) move the economy down along a stationary short-run aggregate supply curve. D) move the economy up along a stationary short-run aggregate supply curve.
Average productivity will fall as long as
A) marginal productivity is falling. B) it exceeds marginal productivity. C) it is less than marginal productivity. D) the number of workers is increasing.