A monopoly creates a deadweight loss to society because it produces less output than the socially efficient level
a. True
b. False
Indicate whether the statement is true or false
True
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Which of the following is not a reason to be cautious about using GDP as an indicator of development?
a. Developing countries may not have many statisticians. b. GDP includes the value of harmful products. c. Many goods and services are exchanged for others and are not recorded as having a specific value. d. Traditional methods of comparing countries' GDP data have numerous statistical weaknesses. e. All of the above are reasons for caution.
Which of the following is a way the government can stimulate saving?
A. Decrease interest rates B. Increase taxes C. Offering tax incentives for retirement accounts D. There is nothing the government can do to stimulate saving.
To close an inflationary gap, the government will
a. run budget deficits b. decrease taxes, leaving government spending unchanged c. increase both taxes and government spending d. run budget surpluses e. legislate a reduction in the rate of inflation
If a competitive firm maximizes shortminusrun profits by producing some quantity of? output, which of the following must be true at that level of? output?
A) p = MC. B) MR = MC. C) p ? AVC. D) All of the above.