The schedules in the table give the marginal social benefit and marginal social cost of a DVD. At the efficient quantity, the minimum supply-price of a DVD is ________ and the value of a DVD is ________
A) $16; $24
B) $16; $20
C) $20; $16
D) $20; $20
D
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If U.S. prices increase relative to the rest of the world, we would expect imports:
A. to decrease and exports to increase. B. to increase and exports to fall. C. as well as exports to increase. D. as well as exports to decrease.
The impact of the multiplier effect is to:
A. smooth out the up and down swings of the business cycle. B. promote price stability. C. magnify small changes in spending into much larger changes in real GDP. D. reduce the impact of an increase in investment on output and employment.
We call a market where there is only one producer of a good or service a monopoly.
Answer the following statement true (T) or false (F)
Which of the following is not true about macroeconomic models?
A. They are based on theories of macroeconomic behavior. B. They attempt to identify key determinants of macro performance. C. They tend to agree with each other about how the economy works. D. They are mathematical summaries of the economy's performance.