If the MC of polluting increased, then what would happen to the optimal level of pollution?
A. Increase
B. Decrease
C. Unsure
D. Stay the same
Answer: A
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If the economy is experiencing an inflationary gap in the short run, an increase in the budget surplus
A) will reduce the size of the inflationary gap. B) will increase the size of the inflationary gap. C) will cause an increase in inflation and increase aggregate supply. D) will increase aggregate demand and will increase the price level.
A typical market supply curve
a. is identical to the firm's marginal cost curve b. does not reflect any external cost borne by third parties c. is identical to the firm's marginal revenue curve d. reflects external benefits enjoyed by third parties e. is perfectly inelastic
The average percentage markup in the economy
a. is greater, the more competitive are market conditions b. is greater, the less competitive are market conditions c. is unaffected by the competitive conditions of the economy d. tends to be highly unstable from year to year e. tends to be stable from year to year, ensuring that the price level is stable from year to year
Suppose you earn $50 a week at your job. You like to go to movies and have dinner with friends. Movies cost $15 each and dinner is $20 each time you eat out. Which of the following combinations is attainable given your weekly budget?
A. 2 dinners and 2 movies B. 4 movies C. 2 movies and 1 dinner D. 3 dinners