In the figure above, if pizza production increases to 15,000 pizzas a day, then marginal benefit ________ marginal cost, and ________ occurs
A) exceeds; overproduction
B) exceeds; underproduction
C) is below; overproduction
D) is below; underproduction
E) exceeds; efficient production
C
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If the government uses stabilization policies to reduce inflation, the economy may have to suffer
A. higher rates of real GDP growth. B. higher rates of unemployment. C. lower rates of unemployment. D. higher rates of price level growth.
In the balance of payments, all of the following are deficit items EXCEPT
A) imports of merchandise. B) funds placed in foreign depository institutions. C) sales of dollars to foreigners. D) tourism expenditures abroad.
Marginal cost is ________ average variable cost when ________.
A. equal to; average total cost is minimized B. less than; total cost is maximized C. equal to; average variable cost is minimized. D. greater than; average fixed cost is minimized
The law of demand implies, holding everything else constant, that as the price of gelato
A) increases, the demand for gelato will increase. B) increases, the quantity of gelato demanded will increase. C) decreases, the quantity of gelato demanded will increase. D) decreases, the demand for gelato will increase.