Suppose that the market price of good X equals the firm's cost of producing that good, but it does not reflect any costs imposed on society. Which of the following is FALSE?
A. The good is priced too low.
B. An external benefit is associated with good X.
C. Too much of good X is being produced.
D. Resources are over-allocated in the production of good X.
Answer: B
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Matt pays a $50 a month membership fee at Bruno's Gym. He can exercise at the gym as many times as he wishes
If the membership fee is measured along the vertical axis and the number of times he exercises is measured along the horizontal axis, the graph between his membership fee and the number of times he exercises will A) be a horizontal line. B) be positively sloped. C) be negatively sloped. D) be a vertical line. E) start out positively sloped and then, as Matt loses interest, become negatively sloped.
In 2017, the U.S. median income for a family of four was about $61,000.
Answer the following statement true (T) or false (F)
When a company applies data-analytics techniques to large amounts of information on product prices, quality features and quantities sold, the company is dealing with
A. macroeconomic issues. B. microeconomic issues. C. non-economic issues. D. aggregate economic issues.
Inflation is best described as a situation in which
A. some prices are rising faster than others. B. the average of all prices are on a sustained rise over a period of time. C. relative prices are changing. D. relative prices are changing, but the purchasing power of the dollar is unchanged.