Which word best completes the following sentence? A rational decision maker always chooses the option for which marginal benefit is __________ marginal cost
a. less than
b. equal to
c. unrelated to
d. more than
d
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Refer to Figure 13-3. Suppose the economy is at point A. If investment spending increases in the economy, where will the eventual long-run equilibrium be?
A) A B) B C) C D) D
Suppose that the amount of computer printers demanded increases by 20 percent when the price of personal computers falls by 10 percent. The cross price elasticity of demand between computer printers and personal computers is
A) 0.5. B) -2.0. C) -0.5. D) 2.0.
Deadweight loss:
A. creates efficiency in markets. B. is the difference between the total surplus occurring in a market and the maximum total surplus achievable. C. is the loss in producer surplus from a price increase D. always occurs in markets.
This table shows the price-level adjustment as compared to the United States. CountryPrice-Level AdjustmentAustralia-0.50China0.25Mexico0.34United States0.00According to the table shown, if Bob is earning $30,000 in the United States and Bill is earning $40,000 in Mexico, what can be said about their standards of living?
A. Bill is earning more in real terms than Bob. B. Bob and Bill are earning the same amount in real terms. C. Bob and Bill are earning the same amount in nominal terms. D. Bob is earning more in real terms than Bill.