Which of the following statements is true?
A) Government cannot remove individuals from a prisoner's dilemma setting and make them better off.
B) As long as government charges each individual a tax that is more than the gain received by being removed from a prisoner's dilemma setting, then government makes that individual better off.
C) Government can remove individuals from a prisoner's dilemma setting by changing the payoff matrix.
D) a and c
E) all of the above
C
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Because resources are scarce, economists would say that
A) people's wants are unlimited. B) anything worth doing is worth doing well. C) every choice has an opportunity cost. D) there are no benefits from cooperation. E) the best things in life are always free.
Marginal cost begins to rise when
A) diminishing marginal product begins. B) diminishing marginal product ends. C) average total cost falls. D) fixed cost falls.