Which of the following is FALSE?
A. If social costs are greater than private costs, "too much" of a good is being produced.
B. Pollution is a social cost.
C. Private costs do not include external costs.
D. Social costs do not include private costs.
Answer: D
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A distinguishing characteristic of public transfer payments is that they ________.
A. involve no contribution to current production in return for the payment B. include the cost of maintaining public parks C. are counted as part of government purchases in the calculation of the gross domestic product D. include wages to government workers
If the quantity of textbooks supplied is 10,000 per year and the quantity of textbooks demanded is 12,000 per year, there is a ________ in the market and the price will ________
A) shortage; rise B) shortage; fall C) surplus; rise D) surplus; fall
What is the expected revenue from developing the simplified software?
a. $4million b. $6million c. $8million d. $10million
Increases in the overall price level:
A. reduce people's real wealth. B. mean that a given number of dollars can buy as much in terms of real goods and services as before. C. tends to cause people to increase their consumption. D. result in an increase people's dollar-denominated wealth.