The socially efficient level of output is determined where
a. marginal social cost equals marginal social benefit
b. marginal private cost equals marginal social benefit
c. average social cost equals average social benefit
d. average private cost equals average social benefit
e. total social cost equals total social benefit
A
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In the figure above, what is the total revenue at point A?
A) $20 B) $150 C) $170 D) $3,000 E) 150 quantity units
Which of the following statements about checking deposits is true?
A) It is a liability for both households and banks. B) It is an asset for both households and banks. C) It is an asset for households but a liability for a bank. D) It is a liability for households but an asset for a bank.
The aggregate supply curve relating the price level to real GDP has three distinguishing segments. Which one of the following indicates the segments?
a. The horizontal segment reflects the increasing pressure on the price level as firms bid for resources. The upward-sloping segment reflects the availability of unused resources. The vertical segment reflects the full employment of all resources. b. The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects the full employment of all resources. The vertical segment reflects the increasing pressure on the price level as firms bid for resources. c. The horizontal segment reflects the full employment of all resources. The upward-sloping segment reflects the increasing pressure on the price level as firms bid for resources. The vertical segment reflects the availability of unused resources. d. The horizontal segment reflects the availability of unused resources. The downward-sloping segment reflects decreasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources. e. The horizontal segment reflects the availability of unused resources. The upward-sloping segment reflects increasing pressure on the price level as firms bid for resources. The vertical segment reflects the full employment of all resources.
When an economy is producing efficiently, it is
A. Getting the maximum goods and services possible from the available resources. B. Producing equal amounts of all goods. C. Experiencing decreasing opportunity costs. D. Producing a combination of goods and services beyond the production possibilities curve.