If education creates external benefits,
a. actual market outcomes provide less than the efficient quantity of education.
b. actual market outcomes provide more than the efficient quantity of education.
c. actual market outcomes provide a higher price than the efficient price of education.
d. the government should impose a depletion tax.
A
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Which of the following is an example of a topic studied by macroeconomists?
A) Utility maximization by a consumer B) Decision making by a producer C) Aggregate demand in an economy D) Price determination by a firm
The wage rate rises. As a result, in the short run Real GDP will __________ and the price level will __________
A) rise; rise B) fall; fall C) remain constant; fall D) fall; rise E) rise; fall
Crowding out refers to the effect that:
A. C and I are indirectly affected by changes in G. B. C is directly affected by changes in G. C. C and I are directly affected by changes in G. D. C and I are completely unrelated to changes in G.
Budget constraints exist for consumers because
a. their utility from consuming goods eventually reaches a maximum level b. even with unlimited incomes, they have to pay for each good they consume c. they have to pay for goods and they have limited incomes d. prices and income are inversely related e. demand curves for goods generally slope downward