The benefit from an additional unit of a good or service that people other than the consumer of that good or service receives is the
A) marginal private benefit.
B) marginal external benefit.
C) marginal social benefit.
D) opportunity cost.
B
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Refer to Table 4-6. The table above lists the marginal cost of polo shirts by Marko's, a firm that specializes in producing men's clothing. If the market price of Marko's polo shirts is $30, Marko's will produce
A) 0 shirts. B) 1 shirt. C) 3 shirts. D) 4 shirts.
What does it mean to say economics is an empirical science, and how is this related to the question of deciding on the usefulness of a model?
What will be an ideal response?
Keynes thought that one macroeconomic problem is that an economy: a. can tend toward an equilibrium level of output that is below the potential level
b. will move back to its potential after a business cycle on its own. c. always operates at the potential and business cycles are created by government intervention. d. can be pushed below the equilibrium level of output by fiscal policy. e. can be pushed away from the potential if prices and wages are flexible.
A price support system:
a. establishes a price floor for a farm product b. results in a surplus c. is costly to taxpayers and consumers d. all of the above