A cost or benefit of a good imposed on people other than the consumers or producer of a good is called a(n):
A. public good.
B. merit good.
C. private good.
D. externality.
Answer: D
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When the exchange rate for the Mexican peso changes from 10 pesos to the U.S dollar to 9 pesos to the U.S. dollar, then the Mexican peso has ________ and the U.S. dollar has ________
A) appreciated; appreciated B) depreciated; appreciated C) appreciated; depreciated D) depreciated; depreciated
If the production possibilities frontier is a straight line,
a. its slope will equal -1 b. resources must not be used efficiently c. resources must be unemployed d. society must not be using the latest technology e. resources must be equally adaptable at producing either product
What is always true at the quantity at which average total cost equals average revenue?
a. economic profit is zero b. marginal cost equals marginal revenue c. economic profit is maximized d. revenue is maximized e. cost is minimized
Historical data shows that if consumption increases by $80 billion when national income rises from $100 billion to $200 billion, then consumption will increase by less than $80 billion when national income rises from $200 billion to $300 billion
Indicate whether the statement is true or false