When the government both provides a service and covers its costs through taxation,
a. the government has a strong incentive to supply consumers with desired goods at a low cost.
b. consumers are in a weak position to either discipline the suppliers or alter the quantity or quality of the service provided.
c. the invisible hand will direct decision makers toward the most efficient level of output.
d. Consumers have strong incentive to be cost conscious.
B
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If average fixed cost exceeds average variable cost at a particular level of output: a. Profits must be negative
b. That fact is meaningless for deciding the quantity of output to produce. c. Output levels are probably quite low relative to the designed capacity of the production facility. d. Both b and c. are likely true.
The historical rise in living standards of American workers is primarily a result of
a. the influence of labor unions in America. b. tariff protection imposed by the American government. c. the enactment of minimum-wage laws in America. d. the rise in American productivity.