As additional consumers obtain the benefits of a pure public good, such as national defense, the benefits to the existing consumers will:
A. stay the same.
B. increase in the short run, but decrease in the long run.
C. decrease.
D. increase.
Answer: A
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A firm could continue to operate for years without ever earning a profit as long as it is producing an output where
A) ATC > AVC. B) AFC < AVC. C) MR > AVC. D) MR < ATC.
In developed countries, tariffs are generally imposed _____
a. because they generate a large portion of federal revenue b. because they discourage imports c. because they are equitable d. because they are efficient
Which of the following causes of unemployment is associated with a wage rate above the market equilibrium level?
a. minimum-wage laws b. unions c. efficiency wages d. All of the above are correct.
The ________ is the rate of change of the ________.
A. rate of inflation; CPI B. current year price index; base year price index C. CPI; rate of inflation D. base year price index; current year price index