The above table shows the marginal benefits and costs from production of fertilizer. There are no external benefits. Based on the data in the table, production of fertilizer has
A) external benefits.
B) external costs.
C) no externalities.
D) constant returns to scale.
B
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The assumption of imperfect information is critical to
A) the old Keynesian and all New Classical approaches. B) all New Classical approaches. C) the Friedman, Phelps, and Lucas New Classical approaches. D) the real business cycle approach.
Which of the following is most likely to help the residents of a nation produce more goods and services and achieve higher income levels?
a. Higher tax rates. b. A higher rate of investment. c. A smaller trade sector. d. Greater use of taxation to transfer income from the rich to the poor.
Refer to Figure 3.1, which shows Molly's and Ryan's individual demand curves for compact discs per month. Assuming Molly and Ryan are the only consumers in the market, if the market quantity demanded is 15, the price must be:
A. $0. B. $6. C. $9. D. $15.
The diamond-water paradox was solved by knowing that
A. the price of water and diamonds is determined by total utility received, not marginal utility. B. the price of water and diamonds is determined by marginal utility, not total utility. C. the total utility of water is greater than the total utility of diamonds. D. the marginal utility of water is greater than the marginal utility of diamonds.