In the above table, if the market is perfectly competitive and unregulated, at the equilibrium output level
A) marginal private cost equals the marginal private benefit.
B) marginal private cost is less than the marginal private benefit.
C) marginal social cost equals the marginal private benefit.
D) marginal social cost is greater than the marginal private benefit.
A
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Because of the relationship between an asset's real rate of return and its risk, one would expect to find all of the following, except one. Which one?
A) Corporate stocks have higher rates of return than U.S. Treasury bonds. B) Corporate stocks have higher rates of return than U.S. Treasury bills. C) Corporate stocks have higher rates of return than corporate bonds. D) Stocks of smaller companies have higher expected rates of return than stocks of larger companies. E) Mutual funds including stocks of companies in politically volatile developing countries do not have as high a rate of return as mutual funds restricted to stocks of companies in developed economies.
The main international repercussion of either a fiscal expansion or monetary contraction is to
a. raise interest rates and the exchange rate, thereby crowding out net exports. b. raise interest rates and lower the exchange rate, thereby crowding in net exports. c. lower interest rates and the exchange rate, thereby crowding in net exports. d. lower interest rates and raise the exchange rate, thereby crowding out net exports.
A market is in equilibrium:
A. if the amount producers want to sell is equal to the amount consumers want to buy. B. whenever the demand curve is downsloping and the supply curve is upsloping. C. provided there is no surplus of the product. D. at all prices above that shown by the intersection of the supply and demand curves.
If the variable on the vertical axis increases by 24 and the variable on the horizontal axis decreases by 3, the slope of the line is:
A. -24. B. -8. C. 3. D. 72.