When an economy operates efficiently,
A. the MRPs of every input into the production of a good are equal.
B. marginal utility equals marginal cost for every good.
C. the price of a good equals the sum of the marginal physical products of its inputs.
D. All of the responses are correct.
Answer: B
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A business entity that produces goods or services is referred to as a(n):
A) market. B) firm. C) government. D) industry.
Refer to Table 2.3. Assume that 2010 is the base year. The GDP deflator for 2007 is
A) 67.1. B) 84.5. C) 100.0. D) 118.3.
Included among the Fed's primary goals to promote a well-functioning economy are
A) high employment, low inflation, and a high foreign-exchange value of the dollar. B) price stability, economic growth, and a high reserve ratio. C) low government budget deficits, interest rate stability, and no inflation. D) a low rate of unemployment, a low and stable inflation rate, and financial market stability.
Household spending on education is counted in which component or subcomponent of GDP?
a. consumption of durable goods b. consumption of nondurable goods c. consumption of services d. investment