Macroeconomic models are
A) never wrong.
B) accurate descriptions of the economy.
C) simple abstractions of reality.
D) consistent with all economic data.
C
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Your 65-year-old father is going to retire next year. He would like to have an income of $20,000 per year for the remainder of his life
If he is expected to live for ten more years, write an algebraic expression to indicate the amount of money he needs today to pay him this sum of money if the interest rate is 10 percent.
The shape of the long-run industry supply curve in a perfectly competitive industry is largely determined by: a. the shape of the short-run industry supply curve. b. the price of inputs as the industry expands
c. the price elasticity of market demand. d. the shape of the average fixed cost curve.
Transfer payments are
a. payments for goods or services that individuals provide b. funds given to people or organizations when no good or service is received in exchange c. included in the government purchases category of GDP d. examples of government investment e. used to pay state employees
The optimal output of a public good occurs where
A. the total cost of the good equals the cumulated benefits of all consumers. B. the horizontal sum of the consumer benefits of the good should equal the marginal cost of producing the good. C. the marginal benefit of the consumer who values the good most should equal the marginal cost of the good. D. the sum of the marginal benefit of each consumer at a given output equals the marginal cost of the good.