Question

41

It appears that all of the firms involved with producing green energy devices such as solar cells, wind power and high-speed bullet trains need government tax breaks and subsidies to survive. Billions of taxpayer dollars are given to such firms every year.

Conclusion: These tax breaks and subsidies for these new technologies always guarantee more efficiency, innovation, and lower costs to consumers.     

True or False

42

If a firm increased inputs (e.g. labor, capital) by 30 percent and got a 5 percent increase in output, then it should feel O.K. because they will enjoy the benefits of economies of scale.      

True or False

43

A command economies usually operate government-run monopolies like government-run healthcare or government-run state companies.

Multiple Choice

• It is false – command economies allow competition to exist

• It is false – command economies have no government-run monopolies

• This statement can only be true if there is also heavy taxation in the economy

• This statement is true

44

The concept of diminishing marginal utility says that the satisfaction level of human beings drop as we get more of something. Because of this, we place less value in the good or service and human beings will then demand a lower price for additional units.

True or False

Answer 1

41. False.

It cannot be guaranteed that lower cost to consumers, innovation because government will always not tax breaks, subsidies, and grant billions of taxpayer dollars. It's just one time or limited time offer to promote such innovation and industry.

42. False.

Firm atleast needs to operate at constant rate of return. Ie. Where proportionate Increase in input should result Increase in output by same proportion.

43. This statement is true

Because in command economy, market is operated on the government command rather than free market operation. The government-run healthcare or government-run state companies is aslo operated on government command rather than free market operation. That's why statement is true.

44. True.

Because as a Increase in consumption of additional unit's will decrease the utility of such commodity and then further it will start diminishing. So utility start diminishing Consumers will tends and desire to spend less proportion of income on such commodities. That's why human beings will then demand a lower price for additional units.