The opportunity cost of consuming good A is lower than the opportunity cost of consuming good B. This means that good:
A. A has a higher marginal utility.
B. A has a higher marginal utility per dollar.
C. B has a higher marginal utility.
D. B has a higher marginal utility per dollar.
Answer: B
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Real business cycle theorists think that most business cycle fluctuations are caused by shocks to
A) the production function. B) the size of the labor force. C) the real quantity of government purchases. D) the spending and saving decisions of consumers.
Critics argue that a disadvantage of minimum-wage laws is that they do not effectively target the working poor because many minimum-wage workers are the teenage children of middle-income families
a. True b. False Indicate whether the statement is true or false
If the federal budget deficit grows too large, then we can safely state that it will be difficult for government to justify implementing contractionary fiscal policies
Indicate whether the statement is true or false
We refer to situations in which individuals need to act collectively to reach solutions that will make everyone better off as:
A. collective-action problems. B. moral hazard problems. C. free-rider problems. D. public-mind problems.