Refer to the table above. Maximum social surplus is:
A) $10.
B) $12.
C) $14.
D) $16.
B
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The difference between gross public debt and net public debt is that
A) net public debt includes interagency borrowing while the gross domestic product debt does not. B) net public debt is expressed in real terms while gross public debt is expressed in nominal terms. C) gross public debt includes interagency borrowing while net public debt does not. D) gross public debt is held by individuals while net public debt is held by the government.
Why are public goods provided by the government, rather than by the private sector?
A) because they are large-scale projects that require the kind of financing only governments can generate through the issuance of bonds B) because it would be difficult for a private sector firm to make a profit providing a public good, since consumers who benefit would not have to pay for it C) because no one really benefits from public goods D) because private sector firms do not have the foresight to plan for public goods
John Maynard Keynes argued that
A. downward nominal-wage rigidity prevented the classical self-correction mechanism from working to end recessions. B. the automatic forces of the market would restore the economy to full employment very quickly. C. the classical macroeconomists' argument that government spending should be used in recessions would not eliminate a recession. D. fluctuations in aggregate supply were the primary causes of recessions.
For a perfectly competitive firm, the value of the marginal product of labor falls as more workers are hired because of the diminishing
A) output price. B) marginal physical product of labor. C) price of labor. D) marginal cost of production.