Refer to Figure 5-15. The current market equilibrium output is partly the result of overfishing. In that case, what does S1 represent?
A) the social marginal cost of harvesting salmon
B) the social marginal benefit of harvesting salmon
C) the private marginal cost of harvesting salmon
D) the private marginal benefit of harvesting salmon
C
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In Figure 4-10 above, if the Fed's goal is to hold income constant, contractionary fiscal policy combined with the Fed's response takes us from points
A) B to D. B) D to B. C) A to C. D) C to A.
Suppose that reducing inflation by 2 percentage points would cost a country 5 percent of its annual output. This country's sacrifice ratio is
a. 0.4. b. 1.5. c. 2.5. d. 5.0.
Which of the following is a statement with positive economic analysis?
A. Lower wages increase employment and reduce the unemployment rate. B. A reduction in the size of the budget deficit will reduce interest rates. C. Slower money growth reduces inflation. D. All of these
If a firm's total costs are $75 when it produces 10 units of output and $80 when it produces 11 units of output, then the marginal cost of producing the 11th unit is
A. $1. B. $5. C. $8.09. D. $10.