The total costs of using a resource are made up of
A) private costs only.
B) external costs only.
C) social costs only.
D) internal and private costs only.
Answer: C
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During the twentieth century, the largest budget deficits as a percentage of GDP occurred
A) during the 1980s. B) during the Vietnam war. C) during the 1990s. D) during World Wars I and II.
If a consumer prefers Apples to Bananas and prefers Bananas to Citrus Fruit, in order to satisfy assumptions about preferences, she has to prefer
A) Bananas to Apples. B) Citrus Fruit to Bananas. C) Apples to Citrus Fruit. D) Citrus Fruit to Apples.
Big Bear Enterprises, which competes in a perfectly competitive market, is producing so that the point chosen along the production possibility frontier is socially preferred. Big Bear Enterprises has achieved which of the following?
a. Allocative efficiency b. Productive efficiency c. Economies of scale d. Long-run equilibrium
Unlike a perfectly competitive firm, a monopolistically competitive firm
a. faces a perfectly inelastic demand curve. b. can earn positive economic profit in the short run and in the long run. c. cannot earn positive economic profit even in the short run. d. does not have the same marginal revenue at every output level.