Complete the sentence. An entrepreneur advances a project only if the expected marginal benefit exceeds the expected marginal cost,
A) and so does a government bureaucrat.
B) but a government bureaucrat advances a project only if the marginal cost exceeds the marginal benefit.
C) but a government bureaucrat is in no position to determine the cost of his own action.
D) but a government bureaucrat has no concern about the benefit of his own action.
A
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Which of the following was an effect of the price ceiling placed on gasoline in the U.S. in the 1970s?
A) Car owners started buying luxury cars that were less fuel-efficient as the price of gas was very low. B) Gas stations ran out of gas as the quantity of gas demanded exceeded the quantity supplied. C) Those who valued gas the most were able to buy gas under the price ceiling. D) The inventory of unsold gas increased and gas stations incurred losses.
Minimizing per-dollar distribution costs favors issuing bonds __________ for issue sizes above approximately __________
A) privately; $10,000,000 B) privately; $100,000,000 C) publicly; $10,000,000 D) publicly; $100,000,000
The supply of money is determined by the Federal Reserve and is dependent on the demand for money.
Answer the following statement true (T) or false (F)
The marginal physical product of labor is
A) the output of the firm divided by the number of workers. B) the change in total revenues resulting from the addition of one more worker, while increasing one other factor of production. C) the change in output resulting from the addition of one more worker, holding other factors of production constant. D) the change in output resulting from the addition of one more worker, adjusting the level of the capital stock accordingly.