A major drawback of providing subsidies to private companies that are natural monopolies is that
A. The companies will allow product quality to decline.
B. Private companies are less efficient than public companies.
C. Taxpayers dislike this use of their tax dollars.
D. The companies have no incentive to limit costs.
Answer: C
Economics
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If the slope of the per-worker production function is 1/2 in a given range, how will a $10,000 increase in capital per hour worked affect real GDP per hour worked in the same given range?
A) Real GDP per hour worked will increase by $10,000. B) Real GDP per hour worked will increase by $5,000. C) Real GDP per hour worked will increase by $20,000. D) Real GDP per hour worked will decrease by $20,000.
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There is a shortage of every good that is scarce
Indicate whether the statement is true or false
Economics