The figure above shows the market for a good with an external benefit. The efficient level of production is ________ units because ________
A) 8; marginal benefit equals marginal cost
B) 8; marginal cost is less than marginal social benefit
C) 10; marginal cost equals marginal social benefit
D) 10; marginal social benefit exceeds marginal benefit
E) 8; marginal benefit equals the marginal external benefit
C
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A consumer holds money to meet spending needs. This would be an example of the
A. use of money as legal tender. B. transactions demand for money. C. asset demand for money. D. use of money as a measure of value.
Which of the following shifts aggregate demand to the right?
a. The price level rises. b. The price level falls. c. The Fed purchases government bonds on the open market. d. None of the above is correct.
What did China create to allow more international trade?
A) Special economic zones B) Foreign exchange centers C) More open and transparent government meetings D) New educational efforts
Net investment is
A. GNP minus final sales. B. gross investment minus depreciation. C. gross investment plus depreciation. D. depreciation minus gross investment.