In a market, social surplus is maximized if consumers' willingness to pay for the good equals the ________
A) marginal private cost of producing the good
B) marginal external cost of producing the good
C) marginal social cost of producing the good
D) opportunity cost of producing the good
C
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The market reliably allocates workers among jobs based on their attitudes toward risk, placing workers more willing to bear risk in riskier jobs
Indicate whether the statement is true or false
If imports are $100 million more than exports, government spending is $500 million, consumer expenditures are $900 million, and investment spending is $600 million, then GDP is
A. $1.9 billion. B. $2.0 billion. C. $1.8 billion. D. $2.1 billion.
The value of total output decreases when labor leaves one industry and goes to another and capital leaves the second industry and goes to the first. This indicates that
A) the first situation was not efficient. B) the second situation is efficient. C) price is greater than marginal cost. D) it would be efficient to return to the first situation.
Refer to the information provided in Figure 27.4 below to answer the question(s) that follow.
Figure 27.4Refer to Figure 27.4. If the economy is currently at the intersection of AS and AD, a decrease in AS with no change in AD will cause
A. economic growth. B. deflationary growth. C. stagflation. D. deflation.