The price of a good will tend to fall if
a. there is an excess demand of the good
b. demand and supply of the good are the same
c. there is an excess supply of the good
d. the price is below the equilibrium price
e. the price is near the equilibrium price
C
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Which of the following statements about private and social costs associated with a negative externality is TRUE?
A) Social costs include externalities. B) Private cost do not include externalities. C) Social costs are never smaller than private costs. D) All of the above.
A normal rate of return on investment is equal to
A) accounting profit minus economic profit. B) the opportunity cost of capital plus any other implicit costs. C) accounting profit plus economic profit. D) total revenue plus total accounting profit
The President proposes a reduction of personal income marginal tax rates in the United States. When marginal tax rates are reduced, there is
A) a decrease in the magnitude of the expenditure multiplier. B) an increase in the magnitude of the expenditure multiplier. C) a decrease in the marginal propensity to consume. D) no change in the slope of the AE line. E) an increase in the marginal propensity to consume.
Refer to the information provided in Figure 6.14 below to answer the question(s) that follow.
Figure 6.14Refer to Figure 6.14. At point A, the slope of the indifference curve is
A. -0.67. B. -1.5. C. -3.0. D. indeterminate because the marginal utilities are unknown.