At the output level defining allocative efficiency
A. the areas of consumer and producer surplus necessarily are equal.
B. consumer surplus exceeds producer surplus by the greatest amount.
C. marginal benefit exceeds marginal cost by the greatest amount.
D. the maximum willingness to pay for the last unit of output equals the minimum acceptable price of that unit of output.
Answer: D
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Which of the following is a unique provision of NAFTA?
A) tariff elimination B) common currency C) environmental standards D) immigration oversights and policies
In the 1970s, the main economic problem was
A. stagflation. B. huge budget surpluses. C. a slow growing money supply. D. an economy that was expanding too rapidly.
Any improvement in overall production technology that permits more output to be produced with the same level of inputs causes
A) a movement up the supply curve resulting in both a higher equilibrium price and quantity. B) a rightward shift of the supply curve so that more is offered at each price. C) no movement of the supply curve, but a fall in price and a decrease in quantity supplied. D) a leftward shift of the supply curve so that less is offered for sale at each price.
Other things equal, the supply of labor will be lower to a job that
a. offers more prestige b. offers valuable on-the-job training c. requires advanced skills or education d. provides a climate-controlled work environment e. allows for flexible work schedules