When social costs of an activity exceed private costs
A) there is a tendency for resources to be under-utilized.
B) this means that resources are being efficiently used.
C) there is a tendency for resources to be over-utilized.
D) None of the above is correct.
C
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The optimum quantity of an input occurs when
A. diminishing returns set in. B. marginal revenue product equals input price. C. marginal physical product equals input price. D. marginal revenue product equals output price.
If the interest rate is 10% then the net present value of these cash flows is
a. $5,000 b. - $9,091 c. -$15,290 d. -$21,901
Two donut chains in your town are battling for customers. The manager of the Real Yum Donut Shop lowered donut prices. As a result, customers: a. increase the quantity demanded of Real Yum donuts
b. decrease the quantity demanded of Real Yum donuts. c. buy the same quantity of Real Yum donuts as before the price change. d. decrease their demand for Real Yum donuts.
Computers and insurance coverage produced in the United States and sold to people in other nations are categorized as
A) U.S. imports of goods and services.
B) U.S. exports of goods and services.
C) U.S. consumption goods and services.
D) foreign capital goods.
E) U.S. government goods and services.