When the marginal benefit of an output exceeds the marginal cost
A. production of that output should be increased, in order to maximize economic surplus.
B. increasing the production of that output would increase the missing surplus.
C. reducing the production of that output would reduce the missing surplus.
D. production of that output should be decreased, in order to maximize economic surplus.
Answer: A
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Which of the following does Dwight Lee suggest as a solution to correct excessive pollution?
a. Reduce the use of petroleum-based fuels b. Place a tax on all large trucks and SUVs. c. Expand markets & property rights into areas where externalities (i.e., pollution) exist d. This is a market failure, these is no clear solution
All of the following issues were discussed as options for reforming the international financial architecture EXCEPT
A) how high an interest rate the lender of last resort should charge when it makes loans. B) the length of the payback period. C) the size of the loans. D) the moral hazard problem associated with a lender of last resort. E) if the lender of last resort (i.e., the IMF) should consult and collaborate with other international institutions such as the United Nations and the WTO.
The number of observations minus the number of estimated coefficients in a regression equation is called:
A) degrees of freedom. B) variance. C) standard error fo the regression. D) none of the above.
An increase in the U.S. demand for Japanese yen causes
A. a decrease in the supply of yens. B. an increase in the yen price of a dollar. C. an increase in the dollar price of a yen. D. an increase in the demand for U.S. goods.