Macroeconomic equilibrium requires
A) equilibrium in the goods market.
B) equilibrium in the money market.
C) equilibrium in both the goods and money markets.
D) equilibrium in neither the goods nor the money market.
C
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"If the price falls and, as a result, the total revenue decreases, demand is elastic." Is the previous assertion correct?
What will be an ideal response?
Government bureaus, unlike private firms,
a. derive their revenue by selling output to the government b. have incentives to respond to consumers' desires c. price their output by equating marginal cost and marginal revenue d. attempt to achieve zero profit e. receive little consumer feedback
Figure 11-5
?
Figure 11-5 contains a production possibilities frontier for wheat and milk production. Explain why Point C is not a point where resources are being used efficiently.
What will be an ideal response?
Classify the following goods into public goods, private goods, club goods, or common resources with suitable reasons
a. Congested roads b. Education provided by a university