If MC > MR,
A. output should be reduced.
B. marginal profit is positive.
C. there are losses.
D. output should be increased.
Answer: A
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Refer to the scenario above. Suppose the discount weight attached to the future benefit is 1/5. People will earn a net benefit equal to:
A) -500 utils. B) -700 utils. C) 860 utils. D) 900 utils.
The closest thing in the real world to a negative income tax is the _____
a. AARP b. EITC c. TANF d. AFDC
Which of the following is the correct way to describe equilibrium in a market?
a. At equilibrium, demand equals supply. b. At equilibrium, quantity demanded equals quantity supplied. c. At equilibrium, market forces are no longer at work. d. Equilibrium is a tendency, a state of perpetual motion. e. Equilibrium is the best combination of price and quantity.
Given the equation C = $1,500 + .70($3,000),
A) Marginal propensity to save is .30. B) Autonomous consumption is $1,500. C) Consumption is equal to $3,600. D) All of the above.