Answer the following questions true (T) or false (F)
1. Marginal benefit is the benefit that your activity provides to someone else.
2. If it costs Vijay $150 to design 5 Web sites and $175 to design 6 Web sites, then $175 is the marginal cost of producing the 6th Web site.
3. Suppose the extra cost for a municipality to enact a "no texting while driving" law is $15,000 per year. Then, the municipality should enact the law if it receives a total benefit from all of its traffic laws of $15,000 per year.
1. FALSE
2. FALSE
3. FALSE
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Which of the following statements is true of economic growth and GDP across the world before 1800?
A) There was sustained growth because whatever improvements in GDP were realized were invested in capital equipment. B) The income per capita in all countries throughout the world was less than $500 per capita. C) The income per capita in all countries throughout the world was more than $1,000 per capita. D) There was a lack of sustained growth because the pace of technological change was slow.
In a classic administrative snafu, the Army assigns trained classical musicians to kitchen duty and places trained cooks in the military band. This is an example of inefficiency in
a. output selection. b. production planning. c. product distribution. d. market segmentation.
A single currency area requires
A) mobile labor and synchronized business cycles. B) immobile labor and synchronized business cycles. C) immobile labor and mobile capital. D) mobile labor and unsynchronized business cycles.
To increase the money supply, the Federal Reserve could
A) lower the discount rate. B) decrease income taxes. C) raise the required reserve ratio. D) conduct an open market sale of Treasury securities.