Refer to the graph shown, which shows the demand and supply for a new vaccine against the common cold. Suppose once vaccinated, a person cannot catch a cold or give a cold to someone else. As a result, the marginal social benefit curve will:
A. lie below the market demand curve.
B. coincide with the market demand curve.
C. lie above the market demand curve.
D. lie strictly below the market supply curve.
Answer: C
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If the price level rises, there is
A) a leftward shift of the demand for money curve. B) an upward movement along the demand for money curve and the curve does not shift. C) a downward movement along the demand for money curve and the curve does not shift. D) no movement along the demand curve for money and the curve does not shift. E) a rightward shift of the demand for money curve.
The costs of inflation depend upon
A) whether it is anticipated or unanticipated. B) who pays it and who receives it. C) the future savings rate. D) none of the above.
For given inputs of labor and capital, if technology is more primitive, labor productivity will be
a. higher. b. lower. c. unchanged. d. characterized by increasing returns to scale.
When a firm experiences declining long-run average total costs as it produces more output, it is known as a(n)
A) oligopoly. B) rent seeker. C) natural monopoly. D) monopolistic competitor.