In the case of a negative externality,
A. marginal external costs are greater than marginal private costs.
B. marginal external costs are less than marginal private costs.
C. marginal external benefits are greater than marginal private benefits.
D. marginal external benefits are equal to marginal private costs.
E. none of the above
Answer: D
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Some economists say that "full employment" exists in an economy when:
a. cyclical unemployment is 2 percent. b. cyclical unemployment is 4 to 6 percent. c. frictional unemployment is zero. d. the unemployment rate is 4 to 7 percent. e. the natural unemployment rate is zero.
Keynesians believe that the transactions demand for money influences the
a. liquidity of money b. precautionary motives for holding money c. velocity of money d. interest rate e. level of real GDP
If the average price level is rising, then we can guess that
A. any of these answer choices could be true. B. the unemployment rate must be below the NAIRU. C. real GDP is above potential GDP. D. the natural rate of unemployment is below the actual rate of unemployment.
An outward shift in the consumer demand for wheat will
A) raise the price of wheat and shift inward the marginal revenue product of labor producing wheat. B) lead to more capital and less labor used in producing wheat. C) raise the price of wheat and shift out the marginal revenue product of labor producing wheat. D) lead to downward pressure on the wages of those producing wheat.